Personal Loan for Agriculture Purpose

personal loan

Agriculture loan in India is all over India does not just involve the farming activities for the cultivation of crops and all but also any other forms of agriculture such as animal and horticulture and floriculture and silk farming or apiculture.

Some of the main areas covered under a farming personal loan are:

1. Managing daily operations in agriculture

2. Purchase of tractors and harvesters and other farming machinery

3. Purchase of farming lands etc.

4. Organizing storage facilities in agriculture

5. Marketing of the products in agriculture

6. Transportation cost from farms to markets etc.

7. Expansion of agricultural activities for farmers

Apart from this, there are also financial aids such as grants and subsidies that protect the farmer in the event of damage to crops due to weather conditions or other factors in personal loans.

The main purpose of Agricultural Loans is to provide credit score flow for the smooth functioning of the farming sector in the country in India. This involves the quantum of production and productivity in the agriculture field.

Eligibility criteria for Agriculture Loans in India?

All kinds of farmers such as small and marginal farmers in India and sharecroppers and oral lessees and tenant farmers are eligible to apply for Agricultural Personal Loan Eligibility.

Documents required for the Agriculture Loans?

The set of documents required for availing agricultural loans are very basic like normal documents related to agriculture only.

1. Valid Photo identity proof like PAN

2. Valid address proof we can include AAdhar

3. Proof of land-ownership and revenue receipts and a record of rights etc.

4. Kisan Credit card it must this is a card issued to all the farmers for agriculture

The interest rate for the Agricultural Loan

Crop Loans:

As per guidelines by the government of India for agricultural crop loans more than Rs 4 lakhs the interest rate is 8% PA If the farmers can repay the loan timely it is good they are offered an interest subvention of 4% and resulting in the interest rate 5% PA.

For agricultural loans beyond Rs 4 lakhs and the interest is charged as per TATA Capital Personal Loan directives. According to the bank's guidelines and for loans up to Rs 2 lakhs, there is no requirement for security. For loans above Rs 2 lakhs, there is a requirement for documents related to agriculture.


The interest rate for the post-harvest personal loan is 8% with interest rate and If the farmers avail post-harvest personal loan against negotiable warehouse receipt and the banks will charge commercial interest rates and fees.  

Land purchase:

The interest rate for land purchase within 6 km of the farmer’s residence like village or city varies on time. For loans up to Rs 60, 200 and there is no margin required in this. However, for loans above Rs 60,2000, the margin requirement is 9%.

Can we Agriculture Loan be used to purchase land?

Why not, it can be used to finance land purchases but only within the radius of 4-6 km of the farmer’s house or village.


Types of Agricultural Loans

1. Rural Development

2. Kisan Credit Card

3. Loans by any Banks

4. Loans by any bank in India

5. Private Sector Bank Agricultural Loans


The Kisan Credit card is a unique product designed specially to help the poor in personal loans like agriculture who aren’t much aware of banking activities. This card aims to protect the interest of the farmers from the hands of moneylenders who might charge exorbitant interest from them if they have a Kisan credit card then they can use it with low charges. This credit card is linked to the farmer’s savings account on every Kisan card.