What is agricultural loan?, Types of Agriculture Loan, Where can you take Agriculture Loan?, Required Eligibility for Agriculture Loan, How much can you get for Agriculture Loan? , Benefits of Agriculture Loan, How to apply for an Agriculture Loan?, How to Apply for an Agriculture Loan?, How to take loan for agriculture?, How to take agriculture loan.
You all know very well that our country India is an agricultural country, people living in rural areas are dependent on farming only because the farmers living in rural areas do not have any other source of income other than farming. But sometimes due to change in weather, farmers’ crops get ruined due to which they have to face a lot of difficulties in harvesting the next crop and earning their living.
To improve the living standards of farmers in the country, many offers of agricultural loan facilities are made available to the farmers by the Government of India and all the banks so that the farmers can easily do farming by getting a loan even in difficult times. How to take? Due to lack of complete information about agriculture, they are unable to take agricultural loan in times of distress
So today through this article we will share with you all how to take agriculture loan? We will discuss about it and tell you what is an agriculture loan, types of agriculture loan, how to apply for an agriculture loan? And so on. Those who want to get all the information related to agriculture loan must read this article till the end
What is agriculture loan? (What is an Agriculture Loan?)
As you all know that the whole life of the farmers depends on farming, but sometimes it happens that due to rain in the morning and in case of excessive rain, the crops of the farmers get ruined. In such a situation, farmers have to face a lot of difficulty in doing farming, but if they want, they can get an agriculture loan from any bank in India in their time of trouble. Agriculture loan is generally used by the farmers to do the work related to farming. It is taken to buy agricultural equipment or to buy fertilizers and pesticides.
All the banks in India provide the facility of agriculture loan with very low interest rates to all the farmers, but taking an agriculture loan is not so easy because for this you will need many important documents as well as you will have to meet the bank. Must fulfill the eligibility criteria prescribed by. Only after that you can get a loan from the bank to do farming or any work related to farming or to buy goods
If you are a farmer and you want to take an agriculture loan for farming or to buy farming related equipment, but how to get an agriculture loan? If you do not know about Agriculture Loan, then do not worry. In this post we have provided Type of Agriculture Loan and all other information related to it, so you can easily apply for Agriculture Loan by reading our article till the end
Types of Agriculture Loan Types of agricultural loans
Depending on the needs related to farming, various types of agricultural loans are provided by banks to the farmers. If you want to know how many types of agricultural loans are there, then it is being explained in detail below-
Retail Agricultural Loan
This type of loan is provided to farmers to meet their needs like post-harvest activities or maintenance of farm equipment. Under retail agricultural loan, farmers are provided a credit card through which they can withdraw money from ATM to meet daily agricultural needs and repay it later.
Agricultural Term Loan
Farmers who want new machinery for farming or upgrade existing machinery but do not have money to buy new equipment or repair old equipment, then they can take agricultural term loan from banks or loan giving institutions. At present, this loan is provided by various banks and loan institutions for a period of 48 months, which the farmer can repay in easy installments.
solar pump set loan
In India, different banks provide solar pump set loans to farmers to install solar pump sets in their fields for small irrigation projects. Which is a long term loan which any farmer can take for a period of 10 years.
Krishi Gold Loan
There are many banks which provide agriculture loan to the farmers in lieu of mortgaging the gold jewellery. It is also known as Agriculture Gold Loan. Any farmer can take this loan from the police during any agriculture related activity but its In return they have to deposit the gold jewelery in the bank as security.
A type of long term loan which is generally given to farmers cultivating orchards or vegetables to carry out horticulture work like erecting irrigation boundary walls/fences. With which you can easily get it from any bank in India.
How much agricultural loan can one get?
Friends, how much agricultural loan you can get depends entirely on the amount of land you have. If understood in a way, according to RBI, 90% of the actual value of the farming of the person applying for agricultural loan can be given. As an example, if you understand that if you have any agriculture, its actual value is Rs 10 lakh, then according to the actual value of your agriculture, you can be given a loan of 90% i.e. up to Rs 9 lakh.
For what purposes can an agriculture loan be taken?
There are only such farmers who have a question in their mind that for which purposes they can take an agricultural loan, then we have explained about it below. You can read the list given below to know for which purposes you can take it if required. You can take agriculture loan.
- To purchase agriculture related equipment or machines
- to buy land for farming
- To start any kind of gardening
- To meet daily needs related to agriculture
- To install solar pump set for irrigation of fields.
- To buy tractor trolley or any other type of vehicle for agricultural work.
- To meet seasonal needs
- For pond construction or fish farming
Benefits of Agriculture Loan
If you take an agriculture loan, you will get many benefits from it, if you want to know what are the benefits of taking an agriculture loan, then read the points given below.
- By getting an agriculture loan, you can buy seeds, fertilizers, and other essential items for farming.
- By taking a loan you will be able to easily purchase agriculture related machinery and equipment.
- If you take an agricultural loan, you will not face any problem during losses due to natural disasters.
- If you are a farmer and want to buy land for farming, then you can buy your land by taking an agriculture loan.
- After giving agriculture loan, you can repay it in easy installments so that you do not have to face financial crisis.
- At present, you can take agriculture loan at low interest rate from any bank or loan giving institution.
- Many schemes are being run through which you can fulfill your needs by taking agricultural loan.
- If you do fish farming and for that you have to construct a pond but you do not have money, then how can you take a loan.
- To take an agricultural loan, you will not need to pay any extra fee or any kind of tax.
- Any person who is related to farming can give agricultural loan to meet the daily needs related to farming.
Major banks and finance companies providing agricultural loans
To solve the problems faced by farmers in India due to natural disasters, agricultural loans are provided by many bank finance companies, which are listed below.
- HDFC Bank
- Bank of Baroda
- SBI Bank
- Bank of India
- ICICI Bank
- Axis Bank
- RBL Bank
- Kotak Mahindra Bank
- IILF finance
- Tata Capital Finance
- Hero FinCorp
Interest rate for agriculture loan. Interest rate for agriculture loan
As you all know that there are many government and non-government and finance companies in India which provide agriculture loans to farmers. Different interest rates are charged on agricultural loans by all these banks and finance companies. Before applying for an agricultural loan from any bank or finance company, you should know about the interest rate charged by that bank on agricultural loan.
Because there are some banks which provide agriculture loan facility at very low interest rates. Therefore, you should apply for an agriculture loan only after two-three banks reduce the interest rates. For convenience, we have provided below the list of interest rates charged by different banks on agricultural land loan, which is as follows-
|Name of bank||Interest rate (per annum)|
|IndusInd Bank||Starting from 9.00%|
|ICICI Bank||Starting from 8.25%|
|State Bank of India (SBI)||Starting from 7.00%|
|axis Bank||Depending on government schemes and applicant’s profile|
|Central Bank||Starting from 7.00%|
Required Eligibility for Agriculture Loan
Any farmer who wants to get an agriculture loan from any bank or lending institution to meet his farming needs, then you should first know that all banks and companies have their own different rules for taking agriculture loan. Only the farmer who completes these is eligible to get agriculture loan. Let us know about them-
- The minimum age of a person availing an agriculture loan must be 18 years or above.
- All those people who are farmers by profession and do farming on their land can apply for agricultural loan.
- It is very important for the farmer who wants to get a loan to have an account in that bank.
- If a farmer has any criminal record against him then he cannot take an agriculture loan.
- Only that farmer can apply for agricultural loan who does not have any outstanding loan.
- If a person has not defaulted on any loan before then he will be considered eligible to take agricultural loan.
Documents required for Agriculture Loan (Required Documents For Agriculture Loan)
Many important documents are demanded by the bank from any farmer who wants to apply for an agricultural loan. For your convenience, we have mentioned all the important documents below, which are as follows-
- Aadhar card
- PAN card
- I Certificate
- Address proof
- driving license
- land related documents
- Ration card
- Voter ID Card
- passport size photograph
- mobile number
- Email ID etc.
How to apply for agriculture loan? (How to Apply for an Agriculture Loan?)
If you want to apply for agriculture, then for your convenience we have mentioned some steps below, by following which you can easily get an agriculture loan to meet the daily needs of your farming, which are as follows are mentioned below-
- To take an agriculture loan, first of all you have to go to the bank or finance company from where you want to get the loan.
- After reaching the bank branch, you have to go to the bank manager and get all the important information related to agriculture loan.
- If you are satisfied with getting the information related to agriculture from the bank manager and you want to take an agriculture loan, then you should get the application form related to agriculture loan.
- Now you have to enter all the information asked in this application form carefully and after that all the important documents have to be attached with the application form.
- After this you have to check the information filled by you in the application form once because if there is any gap in the information filled in the application form then your application will be rejected.
- Now you have to submit this application form to the bank manager, after which the application given by you will be scrutinized by the bank employees.
- And if you are eligible to get it, then the amount of agriculture loan will be provided in your bank account.
Note- Keep in mind that while going to the bank branch, keep all the important documents mentioned above with you.
Today we have told you all through this article how to take agriculture loan? Or how to apply for agriculture loan? Complete information about it has been explained in detail. We hope that you have liked the information given in this article. If you want to get similar information related to bank or loan in future, then stay connected with our website and comment in the comment section given below for any questions or suggestions related to agriculture loan.