What is an Agriculture Loan?
An agriculture loan is a type of credit provided by banks, cooperative societies, and financial institutions to farmers for agricultural and allied activities. It helps in crop cultivation, purchasing seeds, fertilizers, machinery, irrigation systems, livestock, and even land development. These loans are usually offered at subsidized interest rates under government schemes like Kisan Credit Card (KCC) and PM-Kisan initiatives.
Advantages of an Agriculture Loan
Easy Access to Funds
Provides financial support for farming and allied activities.
Lower Interest Rates
Government offers interest subvention schemes, making rates affordable.
Flexible Repayment Terms
Repayment schedule often linked to crop harvesting and income cycles.
Wide Usage
Can be used for crop production, buying equipment, irrigation, animal husbandry, etc.
Government Support
Subsidies, insurance, and loan waiver schemes available for eligible farmers.
Collateral-Free Options
For small loans (up to ?1.6 lakh), many banks offer unsecured loans.
Eligibility Criteria
Criteria Requirement
Applicant Farmers (individuals or joint), tenant farmers, sharecroppers, self-help groups
Purpose Crop production, allied agricultural activities
Age Usually 18–70 years
Ownership / Lease of Land Applicant should own or lease agricultural land
Creditworthiness Satisfactory credit history (if applicable)
Documents Required for Agriculture Loan
Basic Documents
Identity Proof: Aadhaar, PAN, Voter ID, Passport
Address Proof: Aadhaar, utility bill, ration card
Photographs: Passport-size
Land Ownership Proof
Title deed or 7/12 extract or land revenue records
Lease agreement (if applicable)
Agricultural Details
Crop plan or cultivation details
Estimate of expenses for farming activities
Income Proof (for larger loans)
Previous income records or sales receipts (if any)
Other Documents
Bank account statements (last 6 months)
Kisan Credit Card (KCC) details (if availing under KCC scheme)