Are you searching for agriculture loan information in India? Do you want to get an agriculture loan? Here in this article, we provide a detailed guide about how to get an agricultural loan in India.
Agriculture contributes to the major share of our economy. Agriculture is the backbone of the Indian economy. Broadly, agriculture caters to two different segments. These are plant husbandry and animal husbandry. And there are several steps when a farmer looks for loan options.
Different Types of Agriculture Loan In India
According to the different types of requirements, there five different types of loans are available for small and big farmers. These are:
1. Post Harvest Storage or Warehousing Loan
Generally, Government bodies and banks provide financial assistance for the storage of farm or agriculture commodities for non-perishable commodities.
2. Farm Operating Loans
Different types of farm operating loans provide financial assistance for day-to-day needs or expansion requirements. The activities include plowing and preparing land for sowing, weeding, transplantation where necessary.
Additionally, it includes acquiring and applying inputs such as seeds, fertilizers, insecticides, etc., and labor for all operations in the field for raising & harvesting the crops.
3. Farm Ownership Loans
These include loans for buying agriculture or farming machinery, livestock, tractors, etc. Generally, this type of loan caters the fixed cost involvement.
4. Fisheries Finance Program
This program is designed for specific projects in fisheries that qualify under the direction of Congress. A qualified program is eligible for up to 80 percent financing through a direct loan program.
This loan program is designed to refinance a private debt on a fishing vessel or to provide for maintenance and repairs on an existing vessel.
5. Other Agriculture Loans
such as housing loans, grants, the subsidy from the Government for the loss of crop, crop damage, whether based agriculture subsidy, etc.
Top Banks Providing Agriculture Loans in India
The State Bank of India is the market leader in agriculture lending to farmers in India. The bank has a huge network of branches covering most areas of the country. The other prominent banks are ICICI Bank, Bank of Baroda, HDFC Bank, Oriental Bank of Commerce, Axis Bank, UCO Bank, etc.
Who Can Apply For Agriculture Loan?
Broadly, any individual can apply for this loan for his or her farming business. Additionally, SHG groups are also eligible to get these loans.
Generally, the loans are available for horticulture, aquaculture, animal husbandry, floriculture, and sericulture businesses. However, you will need to decide the specific purpose of applying for the agriculture loan.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.