India is an agriculture-based country. The economy of our country heavily depends on agriculture and allied industries. However, agricultural activity demands loans and financial assistance for several different purposes. And in India, there are several banks and financial institutions that provide funding for agricultural activity and business. Here we list down the top banks that provide agricultural loans in India.
Agricultural loans are the specific type of loans to fund seasonal agricultural operations or related activities. The 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 the purchase of land or agricultural tools. Additionally, farmers can avail of 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 farmers, sharecroppers, 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, the above list of documents may vary from bank to bank.
List of 13 Best Banks Providing Agricultural Loans in India
#1. Agricultural 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.
Types of Indian Bank Agricultural loan: Agricultural Godowns/ Cold Storage, Tractor Purchase, Farm Machinery, Kishan Credit Card, Agricultural Jewel Loan Scheme, and many more.
#2. Agriculture Loan from Union Bank of India
The bank provides facilities like Kisan ATM Cards and special Kisan ATM Machines. These ATMs 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.
Types of UBI Agricultural Loan: Union Bank of India 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.
Types of BOI Agricultural Loan: Baroda Kisan Credit Card, Four Wheeler Loan Financing, Cold Storage Finance, SHG( Self Help Group) Finance, and many more.
#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.
Types of BOI Agricultural Loan: The bank offers an agricultural loan for the development of agriculture-related industries, the 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.
Types of BOM Agricultural Loan: Mahabank Kisan Credit Card, Mahabank Kisan All Purpose Term Loan, Finance for Setting Agri Clinics, and many more.
#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.
Types of Canara Bank Agricultural Loan: Kisan Credit Card Scheme, Farm Development Loan, Farm Machinery Loan, Goat Rearing Loan, Fisheries Loan, and many more.
#7. Agricultural Loan from Central Bank of India
The Central Kisan Credit Card is a specific credit service. The bank provides the farmers with 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.
Types of Central Bank of India Agricultural Loan: Cent Kisan Tatkal Scheme, Cent Vermicompost Scheme, Cent Dairy Scheme, Cent Dairy Scheme, and many more.
Related: Mudra Bank Loan Details In India
#8. Agriculture Loan from Indian Overseas Bank
IOB offers several agribusiness consultancy services. It includes conducting feasibility and market studies, preparation of detailed project reports, and formulation of rehabilitation packages for sick agro units.
Types of IOB Agricultural Loan: Food Processing, Development of wasteland orchards, Floriculture,
Green House cultivation of high-value vegetables, Bio-Technology, Environmentally controlled commercial broiler/layer farming, Cultivation of medicinal and aromatic plants, etc.
#9. 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 clinics and private veterinary clinic with the dairy unit scheme.
#10. 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.
#11. 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. The minimum quantum of the loan is Rs.25,000/- and the maximum is Rs.5 lakhs.
#12. 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.
#13. 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 of the agricultural loans in India.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.