Agricultural loans are especially assisted by a wise farmer to finance seasonal agricultural operations or other related activities for instance animal farming, pisci-culture as well as purchase of land or agricultural tools. Such a loan also assists with purchasing inputs including fertilizers, seeds, insecticides etc. along with engaging labor for fertilizing as well as the harvesting of the crops.
Additionally, oftentimes purchasing land, or purchasing agricultural tools, storage of produce as well as the transport, cost of plowing land for sowing, weeding, as well as the transplantation are involved under agricultural loans’ purview.
Farmers can aided as an agricultural loan beginning at 7% p.a. As well as with a processing fee varying between zero to 4% of the loan amount.
Various kinds of Agriculture Loan
Following is the list of kind of agriculture loans that one can benefit for themselves:
- Crop Loan: such types of loans are popularly called as Retail Agri Loans is a type of loan which tends to allow a farmer to meet his short-term expenses appearing because of cultivation of numerous crops, farm equipment maintenance, and other post farm activities. The farmer avails a credit card popularly called the kisan credit card on taking such a type of loan which one can utilize to draw out capital to make required purchases to meet such farming needs.
- Agricultural Term Loan: such loans are long-term loan schemes wherein a farmer can easily avail to meet their off-season expenses. One can procure a loan to purchase or upgrade equipment including windmills, solar power, etc.Â
- Agricultural Gold Loan: The applicant can assist such a type of loan by mortgaging gold ornament as collateral. These loan amounts are utilized to meet numerous farming expenses including purchasing machinery or to meet the costs related to cultivation of crops. Personal loan in Noida available at a low interest rate allows a farmer to use gold which would otherwise stay indolent.
Comparing the personal loans
List of the banks offering Agriculture Loan India
| Name of the bank | Agriculture loan schemes offered |
| State Bank of India | Kisan Credit CardCrop LoanMultipurpose Gold LoanTractor LoanCombine Harvester LoanDrip Irrigation LoanDairy LoanPoultry LoanFisheries LoanProduce Marketing LoanSetting up of Agri Clinic and Agri Business CentresLand Purchase SchemeSBI Krishak Uthan YojanaScheme for Debt Swapping of Borrowers |
National Bank For Agriculture and Rural Development(NABARD) | Capital Investment Subsidy Scheme for Commercial Production Units for organic/ biological InputsAgriclinic and Agribusiness Centres SchemeNational Livestock Mission |
| Karur Vysya Bank | Green Card / Green Card Plus (Kisan Card)Green HarvesterGreen TracWarehouse Receipt LoanJewel LoanKisan TatkalGreen CarLoans for Horticulture ProjectsTwo-Wheeler LoanDairy LoanPoultry LoanPisciculture LoanLoans for SHG-JLG |
| IndusInd Bank | Production Loan (CC)Investment Loan (TL)Hi-Tech Agriculture (OD)Hi-Tech Agriculture (TL) |
Process of Applying for an Agriculture Loan?
If one is looking to apply for an agriculture loan, it is preferable to research numerous options online prior to applying for a personal loan in Noida of the choice by overtaking the nearest branch of a lender. When a person visits the branch, make sure that one carries the needed documentation and to fasten the process of application.
Numerous lenders may also offer potential borrowers the option to apply for an agriculture loan online through their official websites. In such a case, one would require to steer to the respective website, clicking on ‘Apply Now’, enter the necessary details in the application form, along with uploading the required documents onto the website.
Regardless of the channel that you choose, the lender will verify the application and move to approving it. Once the application gets easily approved, the amount of loan will be disbursed into the receiver’s account.
Why does one avail an Agriculture Loan?
A number of lenders nowadays provide a range of agriculture loans for the advantages of such customers. The numerous purposes for which one can obtain an agriculture loan are as mentioned:
- Purchase of farming machinery as well as the equipment
- Purchasing of land
- Horticulture projects
- Purchase of vehicles
- Establishment of dairy units
- Establishment of small poultry units
- For working capital needs
- For seasonal requirements
- For fish farming
Features and Benefits of Agriculture Loans
The key features and benefits of agriculture loans are as follows:
- Simplified Documentation
- Quick Processing
- Competitive Interest Rate Charged
Documents Needed for Agriculture Loans
The documents that one would be asked to submit momentarily of applying for an agriculture loan are as enlisted:
- Well-put and duly filled application form
- KYC documents
- Land/asset documents
- Security PDC
- Other document as mandated by the lender