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 - 

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 - 

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 - 

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.


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.

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