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How Farmers can Get Agricultural Loan worth Rs 1.60 lakh without Any Guarantee through This Government Scheme

Abha Toppo
Abha Toppo
agri loans

India is currently under lockdown due to growing cases of COVID-19 or coronavirus across the country. The lockdown is not only affecting common people but farmers are also facing many problems due to it. At the time of rabi harvesting they are not getting farm labourers to help them with the task. Besides this, the restrictions imposed on mandis are also creating problems for the annadatta’s. Hence, the Centre is making every possible effort to help farmers at this difficult situation.

To recall, the Modi government in February announced to provide Kisan Credit Card (KCC) to the beneficiaries of Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan). As many as 14 crore farmers who are taking the benefit of PM-Kisan scheme would be given loan up to Rs 1.60 lakh without any guarantee. But if a farmer needs loan above this amount then he will have to fill a bond.


Agricultural loan /Farm Loan of Rs 1.60 lakh without guarantee

Farmers in India can take agricultural loan worth Rs 1.60 lakh without any guarantee for cultivation purpose. Earlier this limit was only up to Rs. 1 lakh. Moreover, now the Government has also made the loan procedure quite easier for the convenience of farmers. Minister of State for Agriculture & Farmers Welfare, Kailash Chaudhary said that farmers will get this loan through ‘Kisan Credit Card’ only. Chaudhary said that government is providing loans without any guarantee so that farmers do not have to borrow money from lenders or private banks with huge interest.

On timely payment, they will get loan worth Rs 3 lakh at 4% interest rate. For this the banks have been asked to issue KCC within 15 days of submission of application for agricultural loan. Government has also removed all the banks processing charges on Kisan Credit Cards. In addition, the facility has been extended to dairy and fishery farmers.


Kisan Credit Card Loan online process

  • Go to official website of your bank and open loans section.

  • Look for KCC loan link

  • Click on "Apply Now" button.

  • Fill in all required details carefully.

  • Then click on the submit button.

Note: The application processing time is 3 to 4 business days.

If your application gets approved, a bank executive will contact you and tell you about the required documents and further procedure.

Kisan Credit Card Loan offline process

  • Go to your nearest bank branch and tell the bank executive that you want to apply for Kisan Credit Card Loan.

  • Do not forget to carry all important documents with you at the time of registration.

  • By mentioning your mobile number in the application form, you will get all updates one by one on the phone until your loan is approved.

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