10 Best Agriculture Loans in India

Are you looking for funds for your agricultural loan, greenhouse, or poly house farming? This article provides a list of the best agriculture loans in India special for greenhouse or poly house farming.

Generally, greenhouse or poly house farming includes floriculture and horticulture farming activity. And it demands upfront fixed capital investment for establishing the infrastructure.

In addition to that, there are several other costs that need financial support. The list may include the purchase of an electric motor with a pump, tractor, and other machinery, digging wells or boring wells, installation of pipelines, drip irrigation, planting fruit orchards, etc. Hence, finance is an important aspect of starting an integrated farming business like a greenhouse or poly house farming.

List of 10 Greenhouse Agriculture Loans in India

#1. SBI

State Bank of India provides financial assistance for greenhouse or poly house farming. Generally, you can get loans for the development of fruit orchards like Mangoes, Chikoos, Grapes, Pomegranates, Apples, etc. Additionally, you can apply for a short-term loan for the crops like bananas, pineapples, and Flowers in open and greenhouses culture.

The loan repayment starts after the completion of the gestation period varying from 4 to 7 years for different crops. Repayment commences from the time the crop gives economic yield and is linked to the income generation of each crop every year and varies between 7 to 12 years. You will need to contact your nearest SBI branch for applying for the loan.

Also Read: Best Agriculture Business Ideas

#2. Cent Poly House, Green House, Shade Net House Scheme

Central Bank of India provides need-based financial assistance for undertaking protected farming of various high-quality commercial horticulture crops. The crop list includes Flowers, Vegetables, Fruits, Medicinal Plants, Spices, etc.

You can apply for a loan for the construction/erection of Green Houses, Poly Houses, Shade Nets, etc., purchase and installation of necessary components, and working capital. The quantum of the loan is up to 80% of the project cost, a maximum of Rs.5 Crore.

#3. Punjab National Bank

PNB (Punjab National Bank) provides financial assistance for the construction of the greenhouse and poly house. Additionally, you apply for loans for the purchase of equipment, machinery, etc.

Generally, the bank may ask for the hypothecation of a greenhouse/poly house, machinery, and equipment as primary security. In addition to that, you will need to submit collateral security against your loan amount.

#4. ICICI Bank

ICICI Bank offers a wide range of products for agriculture and farming business. Additionally, you can use the overdraft facility to meet the cost of cultivation and working capital activities for farming and allied activities.

Broadly, there are two different types of finance facilities. These are the Kisan Credit Card and Agri Term Loan. Generally, the KCC is perfect for the daily basis need for finance and the term loan is perfect for financial assistance for a long duration of time.

#5. Bank of Baroda

If you have your own land for cultivation, you can apply for a loan from the Bank of Baroda. Depending upon the cost of the project and subject to assessment as per the bank, the bank approves the loan amount. Additionally, you can avail of a repayment time for a maximum of 15 years. However, you must show sufficient income to the bank for repaying the installments.

#6. Reliance Money

Reliance Money a private-sector lending company provides a wide range of loan items for agriculture and allied activities. Funding available for:

• Agri and Food Processing
• Micro Irrigation
• Greenhouse /Horticulture/Cold Storage
• Poultry/ Layer Unit
• Agri Equipment
• Dairy Units, Fisheries, Rice Mills

#7. IDBI Bank Agriculture Loan

IDBI Bank offers a wide range of loans for the development of agriculture and allied industry. Some of the major items are Crop Loans, Kisan Credit Cards, warehouse finance, funding for agriculture land purchase, building infrastructure, etc.

Read: Best Credit Cards in India

The bank extends financial assistance to individual farmers or groups of farmers for the Activities relating to the establishment/ maintenance of the Nurseries of ornamental plants and trees, orchards, and quick-growing trees and shrubs.

#8. HDFC Bank Agricultural Loan

There are several different loan products you can apply for from HDFC bank. Broadly, the bank provides crop loans, warehouse receipt finance, bill discount, and current account.

The bank provides the term loan for a variety of purposes including the development of commercial horticulture, and the establishment of orchards, and plantations. However, the bank will verify the project feasibility report before sanctioning the loan.

#9. Axis Bank Agriculture Loan

Axis Bank provides horticulture loans to facilitate farmers with credit for the purchase of Inputs, machinery, poly houses, drip irrigation installation, domestic consumption, etc. Currently, the bank has a wide branch network even in rural areas. So, you can contact the nearest branch for getting further details.

#10. Union Bank of India

UBI provides funding for the greenhouse project as “Union Biotech. The product is aimed especially at financing for setting up of Tissue Culture laboratories and also poly houses on a commercial scale. In recent years, the demand for Tissue Culture Plantlets of elite plant varieties has grown tremendously in domestic as well as foreign markets. And in most cases, it needs a protected farming facility.

As of now, there is now an online loan application facility as such. Therefore, you will need to visit the bank branches for applying for an agriculture loan for a greenhouse or poly house. We hope this list of loan providers will help you definitely in getting funding assistance.