Agriculture Loan Interest Rate
Agriculture loans are taken for farming related needs or animal husbandry or fish farming. This article will talk about the rates of interest for agri loans.
Top Banks Agri Loan Interest Rates
Almost all nationalized banks offer agricultural loans for farmers at attractive interest rates. Take a look at the agri loan interest rates -
|
Name of the Bank and Scheme |
Interest Rate |
Processing Fee |
Loan Amount |
|
Central Bank (Cent Kisan Tatkal Scheme) |
MCLR + 1.35% |
Nil - Up to Rs.3 Lakh 50% of 1.25% (i.e. 0.625 %) - above Rs.3 Lakh |
25% of annual income |
| IndusInd Bank (Indus Kisan) | 7% - 15.50% | 1.25% of Sanctioned amount + Applicable GST | As per requirement |
| UCO Bank (UCO Kisan Bhoomi Vriddhi) | Base Rate, Simple rate at half yearly rest. | Up to Rs.3.00 lac - Nil Above Rs. 3.00 lac as per extant guidelines |
Maximum Rs.10 Lakh |
| HDFC Bank (Retail Agri Loans) | 9.25% - 16.05% | 2% - 4% or Rs.2,500 | Maximum Rs.50 Lakh |
| ICICI Bank (Krishi Loan) | 9.50% - 14.85% | Up to 2% of sanction limit | As per requirement |
*Please note that these rates are subject to change at the lender’s discretion. Contact the bank for exact rates.
Other Fees of Agriculture Loans
An agricultural loan is not very different from other loans. A variety of other charges or fees are considered other than the processing charges and the interest rates. They are listed below -
- Foreclosure charges are levied when the borrower closes their loan account before the completion of their tenure.
- Late payment fee is charged when an EMI payment gets delayed.
- Cheque bounce charges are levied when the cheque that was given for the payment bounces.
- Documentation charges are taken for the documentation of the loan.
- Valuation charges are levied when someone’s property or collateral needs valuation before the sanction of the loan.
Documents Required for Agriculture Loans
Most loans have a set of documents required for completing the loan application. Here are the list of documents required if you want to apply for an agri loan -
- Identity Proof
- Address Proof
- Yearly turnover records
- Filled application form
- Farming land ownership records
- Credit report or past and ongoing loan details
- Records of crops grown
Eligibility Criteria for Agriculture Loans
Agriculture loan interest may vary based on your credentials and the amount of loan applied for. But the eligibility criteria remains unchanged for most agri loans. They are -
- Age of farmer should be between 18 and 65
- Should have access to cultivate land, in case of crop loan
- Should be an Indian citizen with no criminal record
The eligibility criteria may vary slightly based on the type of farming the person carries out. Eligibility for taking a loan for pisciculture or beekeeping will be different from crop farming.
Conclusion
Farmers are the backbone of any country, and the government rolls out many schemes to support them. In India, basic farming is tax free, which further helps farmers grow their business. There are bodies like NABARD or the National Bank for Agriculture and Rural Development, which give out subsidized loans through various banks and NBFCs.
Farming loans cover fish farmers, goat farmers, or bee-keepers as well. Some of these technically come under animal husbandry but are often carried out by farmers alongside crop cultivation.
Farming loans are fairly easy to procure and most banks have representatives who can visit your home or farm to help you apply for it. But, in case you are in need of urgent funds, moneyview loans can help you out. You can get loans up to Rs.5 Lakh with minimal documentation. Just visit the moneyview website or download our moneyview app to know more.
Agriculture Loan Interest Rate - Related FAQs
The interest rate on any loan depends on multiple factors including your creditworthiness and the amount of loan sanctioned. On an average, interest rates on agri loans range from 7% - 16.05%.
Agricultural loans may or may nor be collateral free.
Getting a loan of up to Rs.25 Lakh or Rs.50 Lakh as an agriculture loan won’t be a difficult task. But the final number depends on your annual turnover, your project size, and other such factors
A crop loan is calculated as Rs.25,000 per acre in most cases. But it may again depend on the scheme, and the farmer, type of farming, etc.
Any person with a maximum yearly income of Rs.25 Lakh, even if it is from a non-agricultural background, can take a loan to purchase agricultural land. But they cannot directly take an agricultural loan, unless they are already involved in farming.