Do you want to get an agriculture loan for greenhouse or poly house farming? This article includes 10 best agricultural loan providers in India special for greenhouse or poly house farming.
Generally, the 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 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 greenhouse or poly house farming.
List of 10 Greenhouse Agriculture Loan Providers in India
State Bank of India provides financial assistance for the greenhouse or poly house farming. Generally, you can get loans for the development of fruit orchards like mango, chikoo, grapes, pomegranate, apple, etc. Additionally, you can apply for the short-term loan for the crops like banana, pineapple, 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.
#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 the loan for 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, maximum Rs.5.00 crore.
#3. Oriental Bank of Commerce
OBC (Oriental Bank of Commerce) provides financial assistance for the construction of the greenhouse and poly house. Additionally, you apply loans for the purchase of equipment, machinery, etc.
Generally, the bank may ask for the hypothecation of 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 Bank of Baroda. Depending upon the cost of the project and subject to assessment as per 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
Greenhouse /Horticulture/Cold Storage
Poultry/ Layer Unit
Dairy Units, Fisheries, Rice Mills
#7. IDBI Bank Agriculture Loan
IDBI Bank offers a wide range of loans for the development of the agriculture and allied industry. Some of the major items are Crop Loan, Kisan Credit Card, warehouse finance, funding for agriculture land purchase, building infrastructure, etc.
The bank extends financial assistance to individual farmers or groups of the farmer 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 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, 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 for 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 of the 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 the agriculture loan for a greenhouse or poly house. We hope this list of loan providers will help you definitely in getting the funding assistance.
Updated by The Research Team of NextWhatBusiness