Agriculture Loan 2026

Types of Agriculture Loans

Given below is the list of types of agriculture loans that you can avail for yourself:

1. Crop Loans - Crop loans, also referred to as Retail Agri Loans, help farmers manage seasonal costs like equipment maintenance , sowing and post harvest operations. Farmers receive a Kisan Credit Card (KCC) with this loan, enabling them to withdraw funds for essential farming purchases. 
   
2. Agricultural Term Loan - These are long-term loan schemes which a farmer can avail to meet their non-seasonal expenses. One can avail this loan to buy or upgrade equipment such as windmills, solar power, etc. The repayment tenure for such loan schemes can be extended up to 4 years, allowing the amount to be repaid by the farmer in a convenient manner.
3. Solar Pump Set Loan - A solar pump set loan is the appropriate option to be availed if a farmer is involved in small irrigation projects and requires capital for the purchase of a photo voltaic pumping system. The repayment tenure for such loan schemes goes up to 10 years.
4. Loan for Allied Agricultural Activities - Such type of loans can be applied for by farmers involved in allied agricultural activities if working capitals need to be raised to meet their farming expenses.
5. Farm Mechanisation Loan - These types of loan schemes can be applied for if working capital is required by a farmer so that new farming machineries can either be purchased or existing ones upgraded, such as a new tractor being purchased or an old one being repaired.

Popular Agriculture Loan Schemes in India

A diverse array of popular agricultural loan schemes is offered by various financial institutions in India to cater to the specific credit requirements of the farming sector. These schemes are designed to ensure that timely and affordable financial assistance is provided to farmers for both short-term and long-term agricultural needs. 

1. Agricultural Gold Loan: The applicant can avail this type of loan by pledging their gold ornament as security. Various farming expenses, such as the buying of machinery or the meeting of costs related to the cultivation of crops, can be met by the use of the loan amount.
2. Forestry Loan: Forestry loans are available to individuals growing crops on trees. Activities such as converting barren land, establishing irrigation, and clearing wild trees can be funded by these loans. 
3. Horticultural Loan: A horticultural loan can be applied for by farmers involved in setting up vegetable farms and orchards, which not only allows the cost of managing such type of farms to be met, but also helps in meeting the expenses related to other horticulture activities such as wild trees being cleared, a fence being set up, etc.

Top Banks Offering Agriculture Loans in India

Leading financial institutions in India offer specialized credit facilities to support the diverse needs of the farming community. These organizations provide essential funding for a wide range of agricultural and allied activities, ensuring that farmers have access to the capital required for growth and sustainability. 

How to Apply for an Agriculture Loan?

1. Step 1: Compare lenders and loan options online

1. Step 2: Apply via branch or official website

1. Step 3: Fill the form, submit required documents

1. Step 4: Await verification and approval

1. Step 5: Loan amount is credited to your account upon approval

Why Should You Take an Agriculture Loan?

Purchase of farming machinery and equipment:  

Essential tools like tractors, harvesters, and power tillers are bought by farmers using these funds. Tasks are automated and overall productivity on the field is increased through this investment. 

Purchase of land: 

Farmers acquire additional acreage through agricultural loans to expand their existing cultivation area. Farmers can scale-up operations and increase long-term crop yield via this assistance. 

Horticulture projects: 

Farmers can utilize this capital to set up orchards, greenhouses, and vegetable farms. The intensive management required for high-value fruits, flowers, and plantation crops is supported by the funding. 

Purchase of vehicles: 

Farmers can buy transport vehicles like trucks and pick-up vans to move their produce from the farm to the market. 

Establishment of dairy units: 

Funds are used to support various aspects of the dairy business, like acquiring cattle for efficient milk production, constructing sheds for providing shelter for the livestock and providing the intensive care required for high-yield breeds. 

Establishment of small poultry units : 

The loan funds help in establishing poultry houses for intensive rearing, rapid growth of chicks, quick capital turnover by meat production and daily revenue by egg production. 

For working capital needs: 

Agricultural loans are helpful for ensuring continuous operations and covering essential inputs like seeds, fertilizers and pesticides.The loan basically provides necessary liquidity for maintaining the farming cycle.                                                                                                                       

For seasonal requirements: 

Seasonal spikes come in with its associated costs and farmers can utilize agricultural loans to cover those costs. Additionally it helps cover costs of sowing, harvesting and any extra labour. 

For fish farming: 

Farmers of aquaculture can avail agricultural loan for maintenance of ponds, for fingerlings. It can also be utilized for quality fish feed that accelerates growth rates.  

Features and Benefits of Agriculture Loans

The key features and benefits of agriculture loans are as follows:

1. Simplified Documentation: When borrowing an agriculture loan, applicants will only have to submit a few documents such as a valid photo identity proof, proof of residence, etc. These documents can be submitted along with one's application form.
2. Quick Processing: Lenders will verify your application form and the documents submitted by you, after which your loan application will be approved. The loan amount will be disbursed to your account soon after this.

1. Competitive Interest Rate Charged: Banks and financial institutions that offer agriculture loans charge a competitive rate of interest that start as low as 8.80% p.a. Borrowing a loan with such a low interest rate can help you keep the overall cost of your loan down.
2. Loan Repayment Tenure Options: Many agriculture loan providers offer short- and long-term credit solutions. Thus, based on your financial requirements and repayment capacity, you can opt for a loan product that offers a suitable product term. 
3. No Hidden Charges: When you borrow an agriculture loan, you may need to pay other charges such as the processing fee, pre-payment charges, etc. However, lenders will usually inform prospective borrowers about the various charges that they may have to pay for before the loan is borrowed.

Documents Required for Agriculture Loans

The documents that you may be asked to submit at the time of applying for an agriculture loan are as follows:

1. Duly filled application form
2. KYC documents
3. Land/asset documents
4. Security PDC
5. Any other document mandated by the lender

Eligibility Criteria to Borrow an Agriculture Loan

The eligibility criteria to borrow an agriculture loan will vary based on the type of loan scheme that you opt for. The generalised eligibility criteria, however, are as follows:

1. The applicant must be between 18 and 70 years.
2. The individuals will have to own the necessary assets, which will need to be hypothecated to the bank once the loan is borrowed.
3. Loans can be applied on an individual basis or joint basis, based on the lender's terms and conditions.

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