Micro Finance

Agriculture loans are loans given to the farmers for various purposes like purchase of land, tools or machinery, maintenance of the farm, etc. A farmer may need financial support for many other things and keeping all these things in mind many banks in India provide easy loans for them.

Their services include the whole range of agriculture and related activities with some of the exclusive features like:

  • Low-interest rates
  • No intermediaries
  • No hidden cost
  • Quick loan sanction and disbursement

It covers the entire range of agricultural activities from the Farm to the Fork. It offers loans for crop production in the form of ACC / KCC. The loan covers crop production costs, post-harvest expenses, emergencies, etc. The Kisan Credit Card (KCC) is available in the form of an electronic Rupay Card, through which the farmer can withdraw money directly from ATMs, buy items like fertilizers through PoS.  Also provides loans for the purchase of machinery like Tractors, Power Tillers, and Combined Harvesters, etc.

The bank gives loans to other agricultural activities or allied activities like Poultry, Dairy, and Fisheries, etc.


Types of Agriculture Loan

Different types of Agriculture loans offered by the Banks of India has been listed below:

Crop Loan

Crop loan basically covers the expenses related to crop production, post-harvest activities, unforeseen events, etc. Borrowers are given a Kisan Credit Card - a type of electronic Rupay Card that can be used to withdraw money from ATMs very easily. These cards can be used to buy fertilizers for the farm.

Key Features & Benefits of Kisan Credit Card Scheme

  • Credit balance in Kisan Credit Card account gets interested at the savings bank rate.
  • For a loan amount up to Rs.3 lakh, interest subvention at 2 percent p.a. is given.
  • If the borrower makes timely repayments then he will get additional interest subvention at 3 percent p.a.

Gold Loan

Farmers can get loans for agricultural purposes by pledging their gold ornaments. These loans have good interest rates & are disbursed almost immediately. In addition, all farming activities can be covered through these loans. Two types of gold loans available to farmers are - Agri Gold Loan for Crop Production & Multi Purpose Gold Loan.

Agri Gold Loan for Crop Production

Features & Benefits:

  • Can be availed by pledging gold ornaments
  • The easy and convenient loan process
  • The loan is provided at almost all Banks.

Multi-Purpose Gold Loan

Features & Benefits:

  • Easy and convenient loan process.
  • No hidden charges.
  • Repayment schedules are also flexible.
  • Loans are available at all semi-urban & rural bank branches

Farm Mechanization Loan

These loans are given to buy agriculture equipment and machines like tractors, power tillers, combine harvesters, etc. Farmers can avail this loan without any collateral or guarantee. Different types of farm mechanization loans include;

Tractor Loan

This includes 4 types of loan schemes:

  • SSTL (Mortgage-free)
  • SSTL with Liquid Collateral
  • New Tractor Loan Scheme
  • Tatkal Tractor Loan

Combine Harvester Loan

The loan is taken to buy a combine harvester & its accessories. The loan must be repaid in half-yearly installments. All the farmers who can run combine harvesters can apply and they should have 8 acres of irrigated land.

Drip Irrigation Loans

The loan is basically taken to buy a drip irrigation system. All farmers who have land and are involved in agricultural activities can apply for the loan.

Allied Activities

This category consists of 3 types of agricultural loans:

Dairy Loan

This loan is given to dairy societies for the creation of the following infrastructure:

  • Construction of milk house/society office
  • Purchase automatic milk collection system
  • Purchase transport vehicle
  • Buy a bulk chilling unit

NOTE: The loan can be taken by a milk producer co-operative society that is affiliated with the district milk union.


Poultry Loan

The loan can be taken by farmers for the construction of feed rooms, poultry sheds & other equipment.


Fisheries Loan

The loan can be availed to purchase a fish net, fish seeds & other related equipment. All proficient fishermen & farmers with knowledge in pisciculture can apply for the loan.

Important documents required for agricultural loans


  • Duly filled application form
  • ID proof - Voter ID, PAN Card, Aadhaar Card, Driving License or Passport
  • Address Proof - Aadhaar Card, Voter ID, Driving License or Passport

Get in touch with us for more details. We are happy to help!

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Mobile No. Without Country Code i.e 9898989898
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