Greenhouse Farming Loans: Govt. Subsidies And Method to Apply

Greenhouse farming systems integrate floriculture and horticulture agricultural activities. Setting up a greenhouse facility will necessitate a significant cash commitment as well as prior planning. Apart from the establishment of the primary facility, there are various other components that require money and financial assistance in order to work as a whole system.

Costs associated with the purchase of electric motors integrated with pumps, the purchase of tractors and other machinery equipment, the digging of wells and installation of pipes, the installation of irrigation systems, the planting of fruits and vegetables, and so on are examples of such elements. To ensure that all of these things run smoothly and without hiccups, you'll need a reliable source of funding.

Banks offering Greenhouse Farming Loans

Now, let’s have a look at some of the loan providers in our country for Greenhouse farming:

- State Bank of India:

Under agricultural and rural banking, SBI provides financial assistance for greenhouse setup. SBI also provides a variety of different agricultural loans and financial aid to farmers. They provide appropriate repayment arrangements for farmers' loan amounts and adequate time for farmers to generate money. If you need more information, you can go to your nearest SBI branch.

- Central Bank of India:

The CBI offers financial help through its Poly House, Green House, and Shade Net House Schemes. Loans are available up to 80% of the project cost and a maximum of Rs.5.00 crore. The maximum loan amount for SHGs and JLGs will be Rs.20 lakh and Rs.5.00 lakh, respectively. Repayment choices range from 3 to 12 months with a moratorium period of 3 to 7 years.

- ICICI Bank:

ICICI provides a variety of agriculture loans. You can use ICICI Bank's overdraft facility to cover the cost of cultivation as well as other working capital and allied activities. Other loans made available by the bank include those for the purchase of irrigation equipment and other agricultural necessities.

- Bank of Baroda:

BOB offers loans for the construction of a greenhouse or a poly home. These term loans have zero margins up to 1 lakh, and if the loan amount exceeds 1 lakh, the margin is 10% of the entire project cost (The margin will not include subsidy amount, if applicable for the project). Repayment must be completed within 3 to 9 years, with a 6- to 12-month moratorium period. The repayment period can be monthly, quarterly, semi-annually, or annually.

- Reliance:

Several agricultural loans are available through Reliance Money. Reliance Money offers loans for the establishment of a food processing unit, the establishment of a new storage facility, the installation of a drip irrigation system, the construction of a greenhouse, the installation of various Agri-equipment, and so on. They offer a variety of one-of-a-kind loans as per your agri-business requirements.

- Axis Bank:

Axis Bank makes financing available for contemporary horticultural practices. These agricultural loans are simple to obtain and have low-interest rates. The loans assist farmers in obtaining financing for the purchase of inputs, machinery, poly homes, drip irrigation installation, domestic consumption, and so on.

- HDFC Bank:

HDFC lends money to farmers for operations such as establishing and maintaining nurseries, orchards, plantation crops, poly houses or greenhouses, and hi-tech farming. Cash credit or overdraft facilities are available to fund agricultural production costs as well as other expenses such as consumption, post-harvest expenses, and maintenance and repair. A term loan for investment purposes is another option.

- Union Bank of India:

UBI provides loans under the "Union Biotech" scheme. These loans help out farmers in setting up greenhouses, poly houses and buying integrated farming systems. There is no upper limit on the project-based loan and the margin will be 25 percent of the loan amount. A total of 7 years is provided for repayment and a moratorium period of 2 years is provided.

- Bank of Maharashtra:

BoM offers term loans for hi-tech projects on greenhouses, poly houses, shed net, etc. Security has to be provided in the form of hypothecation of crops or assets or mortgage of land. Repayment can be done within a time period of 5 to 9 years. Margin up to 1 lakh is nil and over 1 lakh, it will range between 15 to 25%.

Subsidies available from the Govt. for greenhouse development in India:

Under Govt. Boards and schemes, agriculture subsidies are provided in our country. Likewise, for Greenhouse based farming, there are several subsidies provided under different schemes by different boards. The provided subsidies are either in the form of soft loans or back-ended subsidies on the total cost of the project. Because agriculture is the dominant sector of our country, even bank loans are offered for agricultural purposes under minimum interest rates.

Subsidy pattern for greenhouse farming in India:

The Regulatory body in India for greenhouse farming is NHB (National Horticulture Board). NHB provides a subsidy of 50% on a project of 112 lakh maximum ceiling per beneficiary.

GAIC (Gujarat Agro Industries Corporation) provides a 6% subsidy on loan interest to a maximum limit of 4 lakhs.

NHM (National Horticulture Mission) provides 50% subsidy up to a maximum limit of 50 Lakhs.

Apart from the above, for every state, there is a facility provided by the SHM (State Horticulture Mission), which provides an additional subsidy of 15 - 25 % on the 50 % provided by NHM.

All the above subsidies can be availed by any farmer or entrepreneur, however under a single beneficiary name only.

Guidelines on how to apply:

The government of India is trying to promote greenhouse farming all over the country by introducing greenhouse farming subsidies via its horticulture department. Subsidies of around 50 to 60% are provided on the entire project cost of the greenhouse. The amount and percentage of provided subsidy may vary with respect to the individual state. You can find all the necessary guidelines and information on subsidies on the NHB and NHM website. Or you can go for a visit to your nearest govt. Agriculture office.

The pattern of Assistance in Various Schemes of Dept. of Agriculture & Cooperation, Min. of Agriculture, Govt. of India

Also read: Greenhouse Farming Guide For Beginners

Subsidy Norms under NHM:

Subsidy Norms under NHM: