Loan Against Agricultural Land Purchase

If you are a farmer or just own agricultural land, there are many ways to use it other than just cultivation. You can take loans against your land to fund your other requirements as well. 

Read ahead to know more about loans on agriculture lands and various other types of loans in agriculture. 

How to Get Loan on Agricultural Land?

You can use your agricultural land as collateral to take personal loans or even education loans. Taking a loan against your property reduces your rate of interest, increases the amount you can apply for, and makes it easier for you to procure a loan. 

Applying for a loan against your agricultural land is very easy and doesn’t require you to furnish income tax proofs. Follow these steps to apply for a loan on agriculture land online - 

STEP-1: Choose a loan vendor after checking the rates of various banks.
STEP-2: Visit the website of your chosen vendor and go to the Loans section.
STEP-3: Choose the Loan Against Property option from the types of loans available and fill in the form.
STEP-4: Attach the required documents including the copy of your land’s papers and complete the process.

In case you want to know how to get loan on agricultural land through the offline mode, you can do so by visiting the bank’s branch. Just make sure to carry your identity proof, ownership proof of the land, and other necessary documents with you.

Can I Take a Personal Loan Against Agricultural Land Purchase?

Yes, you can easily take a personal loan against your agricultural land. These are the following points to keep in mind before applying for a personal loan against agricultural land - 

Other than these, you just need to furnish your identity and address proof, as in the case of any personal loan.

Types of Loans in Agriculture 

Now that you know all about taking a loan against your agricultural land purchase, let’s read about the types of agriculture loans you can apply for. The loans can be classified as follows -

Agriculture Term Loans

These are like regular term loans that can be repaid through monthly installments throughout a tenure. These can be used for meeting needs that are both seasonal and not seasonal in nature.

Kisan Credit Cards

The Kisan Credit Cards can be used by farmers to fulfill the seasonal needs such as purchasing of seeds, fertilizers, etc. 

Agricultural Gold Loan

This works as regular gold loans, where some gold is kept as collateral, and funds are taken. The only difference is that this type of loan is available to farmers only.

Agriculture Working Capital Loans

These loans can be used to fulfill the needs of large working capital of farmers. They are repaid like regular term loans.

Farm Mechanization Loan

Such loans can be taken by farmers only in case they want to purchase and install machinery in their farms. The farmer may utilize it to upgrade or purchase solar units, tractors, or irrigation systems.

Horticultural Loan

A farmer who is planning to start a vegetable garden or already owns one, can opt for such a loan. This loan also covers expenses for clearing trees, or erecting fences around the garden.

Loans to Rear Animals

Many farmers also rear poultry, goats, and sheep alongside crops; whereas others might just be involved in pisciculture or bee keeping. These loans cover loans for such farmers. 

Top Banks that Offer Agriculture Loans

Almost all banks give agricultural loans, and there are various schemes for subsidies as well. Here are some noteworthy banks - 


Agricultural loans are a great way to grow your farming. If you are already into farming, you can think about scaling it through various types of loans. In case you want funds for any other business, personal, or educational needs, you can take a loan against your agricultural land.

These loans have lower interest rates and are easy to procure. You don’t need income tax proof in most cases and only minimal documentation is needed. As a farmer, this is the best option for your loan requirements.

Loan on Agriculture Land - Related FAQs

Many banks give loans against agricultural land, but the most prominent is Union Bank of India. UBI has schemes for educational loans on agricultural land.

Agricultural loans can be classified into machinery loans, term loans, working capital loans, or kisan credit cards. They also include loans taken for animal rearing purposes, like poultry farming, pisciculture, goat rearing, etc.

Yes, the State Bank of India gives personal loans against agricultural land. For more details, you can visit their website or get in touch with your nearest branch. 

You need an identity proof and your address proof to apply for any loan. Apart from these, you also need agricultural land related documents, and project reports related to the purpose of your loan. 

Income from basic farming is tax free, but income from animal husbandry is taxable. 

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