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Top 7 banks providing easy loans to farmers

Agricultural loans are loans given to the farmers for various agricultural purposes like purchase of land, tools or machinery, crop insurance, maintenance of farm etc. The farmer may need financial support for many other things as well and keeping all these things in mind many banks in India provide easy loans facility for them. Today in this article we will be discussing top 7 banks that provide a loan to the farmers.

1. State Bank of India (SBI)

State Bank of India (SBI) is the pioneer and market leader in Agri financing. It has a vast network of 16,000 branches all over India, which covers more than 1.01 crore farmers. Their services include the whole range of agriculture and related activities with some of the exclusive features like:

  • Low-interest rates

  • No intermediaries

  • No hidden cost

  • Quick loan sanction and disbursement

SBI agri loan covers the entire range of agricultural activities from the Farm to the Fork. It offers loans for crop production in the form of ACC / KCC. The loan covers crop production costs, post-harvest expenses, emergencies etc. the Kisan Credit Card (KCC) is available in the form of electronic Rupay Card, through which the farmer can withdraw money directly from ATMs, buy items like fertilizers through PoS. SBI also provides loans for purchase of machinery like Tractors, Power Tillers, and Combined Harvesters, etc.

The bank gives loans to other agricultural activities or allied activities like Poultry, Dairy, and Fisheries etc.

2. ICICI Bank

Through the ICICI Bank agriculture loan, the farmers can purchase farm animals or agricultural equipment. The farmers can pay back these loans over a period of 3 to 4 years in -monthly/half-yearly/ yearly installments as per his convenience. The ICICI loan is hassle-free as it requires easy documentation, has convenient repayment options and no additional charges. To avail this loan, the farmer needs to submit a general application form, KYC documents, land documents, and post-dated cheques.

In addition, ICICI Bank also provides a Kisan Credit Card/Kisan Card (KCC) to farmers. The farmers can use this card at any ATM across the country.  To avail the KCC, you just need a piece of farming land and must be 18 to 70 years of age.

3. HDFC Bank

HDFC is the leading Indian private sector bank, which is fully committed in ensuring that the benefits of world-class banking reach all sectors and parts of the country, particularly in the rural areas and agriculture sector. HDFC bank gives required agricultural loans of varying tenors to all creditworthy customers engaged in farming of staple and cash crops, horticulture, plantations, poultry, animal husbandry, dairying, seeds, warehousing, etc.

The bank also funds supplies of various agri inputs such as seeds, fertilizers, pesticides, micronutrients and micro-irrigation tools.

The bank has identified storage, transportation, food processing, and other agriculture commodities as a thrust area and thus offers working capital and term loans of varying tenors to suitable processors, based their financials and on the strengths of underlying commodities.  The bank is increasing its rural presence speedily in order to deliver these products efficiently at the doorsteps of their valued customers, at reasonable prices.

4. Punjab National Bank (PNB)

Punjab National Bank has numerous financial products related to the farming sector. For instance, a person can take loans from the PNB to set-up biogas units or minor irrigation apparatus, develop wastelands, etc. Moreover, those who are interested in pursuing a career in apiculture (beekeeping) can also contact the bank for financial support.

PNB also provides financing for warehouse receipt along with insurance coverage and monetary support to growers in the event of crop failure, due to natural disasters, pests and diseases. The scheme is known as Pradhan Mantri Faisal Bima Yojana. All of this is added to the regular financial services offered to farmers like Kisan Credit Card, debt swapping.

5. Allahabad Bank

Allahabad Bank is yet another nationalized bank in India that provides Kisan Credit Card (KCC) under its Akshay Krishi scheme. Akshay Krishi scheme is an exclusive scheme to provide adequate and timely financial support under a single window to the farmers. Facilities given under this scheme are:

  • Crop loan Component - Cash Credit

  • Allied activities component - Cash Credit - Working capital for activities allied to agriculture

  • Term loan Component - To meet Capital requirements

Its Potato Growers Credit Card Scheme is a unique scheme that provides adequate and timely credit support under a single window to the farmers for their agriculture and other needs.

Allahabad Bank also provides loan for machinery like Tractor /Power Tillers. Farmers living permanently in the control area of the Bank’s branches with a good reputation in the local area are eligible for this loan.

6. Axis Bank

Axis bank since years has helped the farming community through its diversified financial products such as tractor loans, gold loans, Kisan Credit Card, warehouse receipt financing, loans for rural godowns etc.

The Bank also provides a product called Contract Farming, in which loan agreements are made between the farmers and corporates. The amount is given by the lender immediately for production and supply of the product and all of it is managed by the Fair Practices Lending Code.

Axis Bank also offers Pisciculture Loan - made to fulfill timely and adequate loan requirements of the farmers who are in the business of Fresh/brackish water fish/prawns cultivation.

7. Oriental Bank of Commerce (OBC)

Oriental Bank of Commerce provides the Kisan Credit Card-Oriented Green Card (OGS) to qualified farmers for the purpose of meeting their working capital needs and crop production requirements concerning all farm activities, consumption needs, equipment repairs etc. via the credit card. The bank also offers term loan against the card to meet their investment needs. The Oriented Green Card is given to – farmers, cultivators, and artisans who are engaged in farm and non-farm activities.

Other agri banking products offered by OBC are:

  • Model Scheme for Financing Coconut Farming

  • Advance against Warehouse Receipts to Farmers

  • Purchase of Land for Agriculture Purposes

  • Agriculture Clinic and Agriculture Business Centers

  • Scheme for Financing Working Capital Requirement of Cold Storage

  • Scheme for Financing Timber Merchants and Saw Mills

  • Agricultural Loan against Security of Gold Jewelry

  • Financing Two Wheelers / Three Wheelers to Farmers

  • Scheme for purchase of Tractor

To sum up, apart from the abovementioned banks, there are many other banks also that provide various types of agriculture loans to the farmers, to help them increase their production as well as productivity. Some of these banks are UCO Bank, Vijaya Bank, Syndicate Bank, United Bank of India, Indian Overseas Bank, and Bank of Maharashtra etc.



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