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India is an agriculture based country. The economy of our country heavily depends on the agriculture and allied industries. However, agricultural activity demands loans and financial assistance for the several different purposes. And in India, there are several banks and financial institutions who provide funding for the agricultural activity and business. The object of crafting this article is to provide 20 best agricultural loan providers in India.
Agricultural loans are the specific type of loans to fund seasonal agricultural operations or related activities. Seasonal activity includes preparing and plowing land for sowing, weeding, and transplantation where necessary.
Additionally, it includes buying inputs such as fertilizers, seeds, insecticides etc. and hiring labor. Generally, it includes animal farming, pisciculture or purchase of land or agricultural tools. Additionally, farmers can avail funding assistance for purchasing the land and agricultural tools.
Generally, banks provide agricultural term loans to farmers for investment purposes and Short Term Loans for production purposes. There is a need to finance farmers for purchasing land not only to expand their activities but also to make existing small and marginal units economically viable.
Who Can Apply For Agricultural Loan?
Generally, all types of farmers such as small and marginal farmers, tenant farmer, share croppers and oral lessees can apply for the loan. However, along with the application, you will need to furnish several documentations. These are:
- ID proof – Voter ID, Photo ration card. Aadhar etc
- Residence proof – Ration card
- Land ownership proof – records of rights, revenue receipt etc
- Kisan Credit Card
However, this above list of documents may vary from bank to bank.
List of 20 Best Agricultural Loan Providers in India
#1. Agricultural Loan from Allahabad Bank
The bank offers the Kisan Credit Card and Kisan Shakti Yojana Scheme. The Kisan Credit Card is a unique scheme for farmers. Through this card, farmers can draw a cash loan for crop production as well as domestic needs from the card-issuing branch within the sanctioned limit.
The Kisan Shakti Yojana provides farm investment credit. In addition, it provides personal or domestic loans including repayment of debt to moneylenders. The permissible loan limit will be 50 per cent of the value of land or 5 times the net farm income, whichever is lower, less the outstanding amount, if any, in Agril.
#2. Agricultural Loan from Andhra Bank
The bank provides facilities to farmers like AB Kisan Vikas Card, AB Pattabhi Agricard, AB Kisan Chakra. Additionally, it provides funding for rural godowns, Agri clinics, agri-service centers, self-help groups and solar cookers. They also provide other schemes such as Kisan Sampathi, tractor financing, Kisan Green Card, Surya Sakti and loans to dairy agents.
#3. Agricultural Loan from Bank of Baroda
BoB offers farmers the Baroda Kisan Credit Card. Also, the bank has schemes for the purchase of agricultural implements, heavy agricultural machines like tractors, irrigation, and other infrastructure. Bank of Baroda also finances the development of agro-industries like horticulture, sericulture, fisheries, dairy, and poultry.
#4. Agricultural Loan from Bank of India
BOI has a Kisan Credit Card Scheme. It helps farmers raise short-term funds for agriculture and other farm-based activities, on an on-going basis, with very flexible and friendly repayment terms. It also offers an agricultural loan for development of agriculture related industries, purchase of machinery and other agricultural purposes.
#5. Agricultural Loan from Bank of Maharashtra
The bank offers agriculturists a Mahabank Kisan Credit Card. Additionally, it provides financial schemes for digging new wells, purchasing harvesters, livestock, vehicles, and land. Repayment terms for different agricultural loans range from three to fifteen years.
#6. Agricultural Loan from Canara Bank
CB provides Kisan Credit Cards. Limits up to 50,000 have no margin while those above 50,000 have a margin of 15 to 20 percent. Other than this, Canara Bank provides a wide array of financial schemes for different agricultural purposes.
#7. Agricultural Loan from Central Bank of India
The Central Kisan Credit Card is a specific credit service. The bank provides the farmers this service on the basis of their holdings for purchasing agricultural inputs. Only those farmers having a good track record for the past 2 years with the bank as a borrower or depositor and who are not defaulters to any credit institution can apply for the loans.
#8. Agricultural Loan from Corporation Bank
CB offers a range of loan schemes to farmers. They are the Corp Gram Mitra Yojana, Corp Arthias Loan Yojana, Corp Kisan Tie-Up Loan Scheme, Corp Kisan Farm Mechanisation Scheme and Corp Kisan Vehicle Loan Yojna.
#9. Agriculture Loan from Dena Bank
Dena Bank has sponsored 2 Regional Rural Banks namely Dena Gujarat Gramin Bank in Gujarat and Durg Rajnandgaon Gramin Bank (DRGB) in Chhattisgarh. The bank has set up a Rural Development Foundation for training unemployed youth in rural areas. Other financial schemes of the bank are the Dena Swacch Gram Yojana, Dena Kisan Gold Credit Card Scheme, and the Dena Bhumiheen Kisan Credit Card Scheme.
#10. Agriculture Loan from Indian Bank
IB has a wide range of schemes for agriculturalists such as Swarojgar Credit Card, Gramin Mahila Sowbhagya Scheme, Kisan Bike Loan Scheme, Yuva Kisan Vidya Nidhi Yojana and Indian Bank Kisan Card Scheme.
#11. Agriculture Loan from Indian Overseas Bank
IOB offers a number of agribusiness consultancy services. It includes conducting feasibility and market studies, preparation of detailed project reports and formulation of rehabilitation packages for sick agro units.
#12. Agricultural Loan from Oriental Bank of Commerce
It has two agricultural projects – the Grameen Project and the Comprehensive Village Development Programme. The Grameen Project involves disbursing small loans ranging from Rs.75 onwards to mostly women. The bank also provides training in villages in using the locally available raw material to produce pickles and jams.
The Comprehensive Village Development Programme focuses on providing an integrated package of rural finance to villagers to build up their village.
#13. Agriculture Loan from Punjab and Sind Bank
PSB offers a range of financial schemes for farmers. It includes the Zimidara Credit Card, tractor finance scheme, drip irrigation scheme, Kheti Udyog Khazana Yojana, vermicomposting scheme etc. In addition, it provides funding for horticulture clinic and private veterinary clinic with the dairy unit scheme.
#14. Agriculture Loan from Punjab National Bank
This bank has a special website called PNB Krishi for agriculturalists. It gives details on crop practices, plant protection, farm machinery, market prices and other farming news and activities. The website provides a list of financial schemes on production credit, investment credit, composite loans, animal husbandry and farm mechanization.
#15. Agriculture Loan from Syndicate Bank
SB offers a wide range of agricultural loan products. The list includes the Synd Jai Kisan Loan Scheme, Jewel Loan Scheme for Agriculture, Syndicate Farm House Scheme etc. Additionally, it provides finance for Hi-tech Agriculture, Development of Irrigation Infrastructure scheme, Syndicate 2/3/4 Wheelers Scheme and the Syndicate Kisan Credit Card (S.K.C.C).
#16. Agriculture Loan from UCO Bank
This Bank provides the UCO Hirak Jayanti Krishi Yojana to meet the long-term credit needs of the farming community. The bank provides funding in rural areas for agriculture and allied activities as well as for personal purposes. However, only farmers below 60 years are eligible to apply. Minimum quantum of the loan is Rs.25,000/- and the maximum is Rs.5 lakhs.
#17. Agriculture Loan from Union Bank of India
The bank provides facilities like Kisan ATM Cards and special Kisan ATM Machines. These ATM’s are easy to operate and do not require farmers to have a high level of literacy. They are voice enabled in the local language. Additionally, the ATMs have a touch screen monitor and work on a biometric authentication system like fingerprint verification.
#18. Agricultural Loan from United Bank of India
The range of financial schemes offered to agriculturalists includes the United Krishi Laghu Paribahan Yojana, United Krishi Sahayak Yojana, United Gramyashree Yojana, Gramin Bhandaran Yojana and the United Bhumiheen Kisan Credit Card.
#19. Agriculture Loan from Vijaya Bank
This bank offers one comprehensive financial scheme known as the Vijaya Krishi Vikas (VKV) Scheme. This scheme provides a simple package to farmers to meet entire agricultural credit requirements such as crop production, investment credit, and consumption credit. All farmers including owners, tenant cultivators, leased land farmers and sharecroppers are eligible for this scheme.
#20. Agriculture Loan from NABARD
NABARD stands for National Bank for Agriculture and Rural Development. The organization is responsible for refinancing disbursement to commercial banks, State cooperative banks, State cooperatives, rural development banks, Regional Rural Banks (RRBs) and other eligible financial institutions.
Additionally, it sanctions money through the Rural Infrastructure Development Fund for different projects. Generally, the list includes irrigation, rural roads and bridges, health and education, soil conservation and drinking water schemes. NABARD also offers a Kisan Credit Card Scheme and crop loans under the Rashtriya Krishi Bima Yojana.
Apart from the above list, there are several financial institutions in India, who provide loans for agriculture. However, this segment is highly localized in our country. Therefore, it is advisable to contact your nearby branches for availing the agricultural loan in India.