So developing the plight of the farmers is indispensable for the development of the country. Though not given enough credit more often, farmers have been the silent contributors towards the growth of the Indian economy for ages. The Government of India has a definite agricultural policy in operation to boost agricultural production. But, there still remains a lot more to be done when it comes to ensuring substantial credit flow to this sector.
The loans are offered to farmers for numerous agricultural purposes from different Government and non-Government financial institutions. If you want to contribute to the growth of the nation and have an inclination to get involved in agricultural production, you can avail SBI Agricultural Loan. Easy terms & conditions, competitive interest rate make SBI products favorable.
Few of the following schemes, available under SBI Agricultural Loan are mentioned below –
- Agricultural Gold Loans
- Stree Shakti Tractor Loan
- Kisan Credit Card
- Produce Marketing Loan
- Kisan Gold Card Scheme
- Establishing Agri Business Centre
- Land Purchase Scheme
- Power Tillers
- Dairy Scheme
- Krishi Kalyan
- Irrigation Schemes
- Rural Training Institute for Self Employed People
- Horticulture Financing
- SBI Krishak Uthaan Yojana
If you raise the funds then that can be used for diverse activities such as purchasing agricultural tools, land for farming, insurance for crop etc. Many reputed lenders in India are also offering Best personal loan for agriculture these days with affordable interest rates. Go through this blog, and we will tell you different aspects of these products.
When can you get a loan for agricultural activities?
Banks/NBFCs are offering attractive loans for agricultural activities if you need funds for the following purposes-
- To purchase an agricultural land
- For expenses made to store any agricultural product in storage or warehouse
- For buying cattle or other livestock
- For buying equipment for farming, irrigation or any other genuine purposes related to agriculture
- For expenses meant for agricultural marketing
Long term loans for agricultural activity is also offered to farmers to meet larger expenditures related to agricultural activities.
Now you can also get Kisan Credit Cards which are specially designed for Indian farmers to meet their daily requirements.
Advantages of availing an Agriculture loan-
Given below are a few benefits of taking an agriculture loan –
- Requires only a few basic documents for loan application
- Affordable rate of interests
- The loan application is processed in quick time
- Such loans do not have any hidden charges
- Comes with flexible repayment options
When can you qualify for an agriculture loan?
Given below are some of the basic requirements that you need to fulfil in order to avail the fund from different providers-
- You should be between 18 to 70 years of age
- Should harvest an agricultural land
- All types of farmers are qualified for loans for agricultural activities. Such loans are meant for all farmers including small farmers, tenant farmers, marginal farmers and oral lessees.
Documents you need to submit –
Farmers need to submit simple documents and the process of documentation is absolutely hassle-free. The following documents are to be submitted –
- A valid proof of identity- This may be any one of your
- Voter Id
- PAN card
- Ration card
- Adhaar card
- Driving license
- A valid proof of residence- As a proof of residence, you can submit any one of the following documents
- Rent agreement
- Driving license
- Ration card
- Utility bills of the last 3 months
- Bank statement
- Any cultivation proof as required by the lender
Some popular products in this regard are mentioned below –
1. Indian Bank Agriculture loans –
Indian bank is providing numerous schemes to benefit the farmers in India. These schemes include the Yuva Kisan Vidya Nidhi Yojana, Indian Bank Kisan Card scheme, Swarojgar Credit Card etc.
2. Agriculture loans from Allahabad Bank-
Allahabad bank is offering Kisan Credit Card and Kisan Shakti Scheme for farmers. The credit card comes with a unique feature where a farmer can withdraw a loan amount for its use in agricultural practices as well as for other related purposes. The Yojana scheme provides loans amounting to about 50 % of the farming value of land or 5 times that of the total farming income.
3. Canara Bank Agriculture loans –
Canara Bank is offering Kisan Credit Cards with a loan amount of Rs 50,000 with no margin and with a margin of about 15% to 20% for loans exceeding Rs 50,000.
4. Bank of India Agriculture loans –
Bank of India offers a Kisan Credit Card scheme that helps farmers to obtain funds for agricultural and other farming activities. Such schemes are provided with easy and friendly tenures of loan repayment. The bank also offers loans for purchasing agricultural equipment or related machinery.
5. Agriculture loans from Punjab National Bank-
This bank has started a special website to help the farmers. The website named as PNB Krishi helps the farmers with various helpful crop practices, farming machinery schemes and other farming related information. Moreover, the bank is also providing financial help with schemes like composite loans, production credit, animal husbandry, investment credit and farm mechanization.
Rate of Interest –
The Indian government has released certain notifications from time to time to deal with the interest rates associated with agricultural loans –
Interest rates on crop loans- As per the notification released in 2013-14 by the government, if a farmer takes a loan of Rs 3 lakhs or below, he needs to incur an interest of 7% on the loan amount. As an advantage for the farmers who are repaying the loan on time, the government allowed a reduction of 3% on the interest rate p.a, thus, reducing the effective interest rate to be 4%.
If a farmer is availing a loan amount above Rs 3 lakhs, the interest rates will differ, as authorized by RBI. As per RBI requirements, no security is needed for an agricultural loan of Rs1 lakh. However, you need to provide a security if your loan amount exceeds Rs1 lakh as specified by the lender.
Post harvest loan- such loans are available for farmers with a reduced interest rate of 7%. These loans are provided to farmers against the warehouse or storage receipts. However, banks charges may differ accordingly.
For purchasing of land- Farmers who obtain their farming land within 5 km of their residence are eligible for such loans with reduced interest rates. For a loan up to Rs 50,000, no margin is specified. However, if the loan amount exceeds Rs 50,000, a margin of 10% is charged. The land needs to be pledged as a mortgage by the farmer.