Apply Your AGRICULTURE LOAN

Many banks and some dedicated government agencies, offer agricultural loans to facilitate various agricultural activities. Farmers can use this loan for agricultural projects such as the purchase of new land, the improvement or purchase of new agricultural machinery, the construction of irrigation canals, the construction of grain storage sheds, etc.

Features of Agriculture Loan

End-use Flexibility: Agricultural loan can be availed to meet a variety of expenses related to farm activities, such as to purchase new farmland/ cattle or to manage the operating costs and other allied activities.

Various Types: Several types of agricultural loan exist on the basis of end use as well as the repayment tenure.

Minimal Documentation: Generally, the agricultural loan can be availed with simple and minimal documentation.

Collateral Optional: Both secured and unsecured agricultural loans are offered on the basis of loan quantum and applicant profile.

Benefits of Agriculture Loan

• Available with minimal documentation.
• Special Interest rates starting at 7.50% p.a. May be lower for specified Government backed schemes
• You can repay the loan over flexible repayment tenure.
• Some lenders also offer unsecured agricultural loan, depending on the applicant’s profile and the quantum of loan applied for.
• You can use the agricultural loan amount for a variety of agricultural purposes, ranging from short-term seasonal farm activities to long-term investment in farm machinery.

General Eligibility Criteria To Avail Agriculture Loan

Following are the general eligibility criteria for agriculture loan. Still it may differ from location to location, bank to bank and on borrowers profile. many policies also determine this eligibility criteria.

Who is Eligible?	Individual farmers/ Joint cultivator owners Tenant farmers, share croppers, and oral lessees etc. Self Help Groups (SHGs) or Joint Liability Groups (JLGs) including tenant farmers.
Residential Status	Resident Indian
Eligibility Age	18-70 years
Land Ownership	Generally, should own a piece of agricultural land or have access to agricultural land for specified purposes

Union Budget2020-2021 Allocation to Agriculture

This amount was earmarked with respect to the following proposals:

The Finance Minister, Nirmala Sitharaman announced an allocation of Rs. 1.42 crore to the Ministry of Agriculture and Farmer’s Welfare in the Union Budget of 2020-21.

• Agricultural credit target of Rs. 15 lakh crore for 2020-21.
• PM KUSUM to cover 20 lakh farmers for standalone solar pumps and further 15 lakh for grid connected pumps.
• Creation of efficient warehouses on PPP mode with the help of viability gap funding.
• Self Help Groups (SHGs ) run village storage scheme will be launched.
• e-NWR will be integrated with e-NAM.
• “Kisan Rail” and “Krishi Udaan” will be launched by Indian Railways and Civil Aviation, respectively to facilitate national cold supply chain for perishables.
• To increase coverage of artificial insemination to 70%.
• Milk processing capacity to be doubled by 2025.
• Fish production target of 200 tonnes by 2022-23.
• Fishery extension through 3477 Sagar Mitras and 500 fish FPOs.
• To raise fishery exports to Rs. 1 lakh crore by 2024-25.

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