How To Get Agriculture Loan

Most of India’s population depends on farming, and agriculture can be expensive. To aid farmers in cultivating their crops and other expenses, banks and other lenders offer agriculture loans. 

What Is Agriculture Loan?

Farmers are encouraged to seek help from the government and other institutions in order to grow their crops. They can get loans through agricultural assistance programs, called agricultural loans. 

These loans are a form of short-term assistance that allows farmers to purchase seeds, fertilizers, and other materials needed for planting. 

The loan is repaid once crops have been harvested. The cost of plowing a field for sowing, weeding, and transplanting also falls under this category.

What Are The Types of Agricultural Loans in India?

There are several types of agricultural loans available for farmers in India. You can take an agricultural loan to do the following -

Financial aid is also available in the form of grants and subsidies, which are usually meant to protect farmers from crop damage or loss. Banks offer agricultural loans to farmers working towards the cultivation of food crops, but they are also available to anyone who is engaged in other agriculture-related sectors like horticulture, aquaculture, animal husbandry, silk farming, apiculture (beekeeping), and floriculture (flower growing).

How To Get Agriculture Loan?

Individuals who want to get agricultural loans can do so in two ways: online & offline.

Online: Several Indian banks offer agricultural loans to provide monetary aid to farmers. Compare interest rates, and loan features, and select a loan that suits your specific requirements. 

Then, open the official website of the bank of your loan and apply for an agricultural loan. Upload the necessary documents and apply. 

Once your loan application is processed, the loan amount will be transferred to you.

Offline: In the offline method, you can directly approach the bank branch and request an application for an agricultural loan. Fill in the application and submit it along with the required paperwork. 

When your application is processed and approved, you will receive your loan amount. 

Loan For Agricultural Land Purchase

One of the main purposes of an agriculture loan is to purchase agricultural land. Small and marginal farmers, who cultivate the land but do not own it, benefit from this loan.

To avail this loan, farmers must satisfy the necessary requirements of the bank. Farmers can use this loan to buy, cultivate, and develop agricultural, fallow, or wastelands. The loan amount offered will depend on the area, valuation, and the cost of its development.

What Are The Required Documents For an Agriculture Loan?

The document requirements for agricultural loan schemes depend on the bank and type of loan availed. Most lenders request these common documents:

Features of Agriculture Loan

The features of agriculture loans include the following:


Farmers can easily avail an agricultural loan as there are several agricultural loan schemes available designed to cater to their specific needs. Banks and other financial institutions also provide these loans at low-interest rates and on flexible terms to aid farming. Simply choose the right agricultural loan scheme and apply for it.

How To Get Agriculture Loan - Related FAQs

You can pay off the loan when your harvest your crop.

Banks, micro-finance companies, and government schemes offer loans customized to the needs of farmers.

Farmers can get loans from any bank, microfinance, NBFC, or government scheme. 

Farmers and cultivators who fulfill the eligibility requirements of the lender can get an agricultural loan.

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