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Best Agriculture Loans in India with Latest Interest Rates and Charges

A number of banks and private lenders in India offer agriculture loans or farm loans that start at an interest of just 8.70 percent per annum. The processing fees for these loans can be as low as 0 percent and can go up to around 4 percent of the loan amount. Farmers can apply for a short-term or long-term agriculture loan, based on their needs.

Abha Toppo
Agri loans in India
Agri loans in India

Agricultural loan or farm loan is offered by banks and dedicated government agencies to facilitate various agricultural activities. Farmers can take loans to purchase new land, buy new farm machinery, build grain storage sheds etc. Banks in India offer agri loans that start at an interest of just 7.50 percent per annum. Today in this article we will talk about important aspects of an agricultural loan that includes features, rate of interest, types of loans and much more.

Agriculture/Farm Loans in India with Interest Rates

Below we have mentioned interest rate offered by leading banks in India;

Name of the Lender      

Rate of Interest (p.a)

State Bank of India

7.50% onwards

Central Bank

7.50% onwards

Axis Bank            

8.00% onwards

IndusInd Bank

9.50% onwards


9.60% onwards

Types of Agriculture Loan

On the basis of Loan Tenure

  • Crop Loan or Kisan Credit Card (Retail Agri Loan)

  • Agriculture Term Loan

On the basis of end use

  • Solar Pump Set Loan

  • Farm Mechanization Loan

  • Loan for Allied Agricultural Activities

Other Loans

  • Agricultural Gold Loan

  • Horticultural Loan

  • Forestry Loan

Benefits of Agricultural Loan

  • It is available with less documentation.

  • Interest rates starts at 7.50 percent per annum

  • You can pay the loan over flexible repayment tenure.

  • You can use the loan amount for various agricultural purposes

Who is eligible for agriculture loan?

  • Individual farmers or Joint cultivator owners

  • Tenant farmers, share croppers & oral lessees etc.

  • Self Help Groups (SHGs) / Joint Liability Groups (JLGs)

Documents needed for agriculture loan

  • Proof of Identity - Aadhaar, Voter ID, Passport, Driving License, etc.

  • Address proof - Bank passbook, Aadhaar Card, PAN Card, etc.

  • Application form (properly filled)

  • Land Documents

Agriculture Loan - Fees  & Charges 

  • Foreclosure charges - would be levied if the borrower prepays his loans & closes loan account before completion of the loan repayment term.

  • Processing fee - A one-time processing fee would be deducted from the borrower’s sanctioned loan amount before it is disbursed.

  • Stamp duty charges - is charged at actuals or as per the applicable state laws.

  • Late payment charges - If the EMI is not paid as per the schedule specified by lender then late payment charges will be levied.

  • Bounce charges - is charged if the repayment cheque bounces.

  • Valuation charges - is charged if applicant’s residential / commercial property undergoes valuation.

  • Documentation charges - Will be charged as applicable.

Which bank is best for agriculture loan?

There are many banks in India that offer agri loans like State Bank of India, PNB, ICICi, HDFC, Bank of India, NABARD etc. All the banks have their own features and benefits hence you can choose them as per your needs.

SBI Agriculture Loans

SBI has the largest network in India, with a branch functioning with all facilities in the most rural parts of the country. It provides Crop Loans, Kisan Credit Card Scheme, agricultural term loans, Produce Marketing Loan Scheme, Loan Against Warehouse Receipts, Land Development Scheme, Minor Irrigation Scheme, Land Purchase Scheme, Kisan Gold Card Scheme,  Krishi Plus Scheme, Arthias Plus Scheme, Finance To Horticulture, Broiler Plus Scheme etc. SBI also offers Microfinance through Self Help Groups along with loans through 30 regional rural banks.

Check - sbi.co.in/

NABARD agriculture loans

National Bank for Agriculture and Rural Development (NABARD) offers Kisan Credit Card (KCC) Scheme and crop loans under its Rashtriya Krishi Bima Yojana. It also provides short & long-term refinancing along with direct lending. The term of refinancing can range from 18 months to more than 5 years.

Check www.nabard.org/

Nationalised Bank Agriculture Loans

Nationalised banks that offer agricultural loans are Punjab National Bank (PNB), Oriental Bank of Commerce, Union Bank of India, Vijaya Bank, UCO Bank, United Bank of India, Allahabad Bank, Andhra Bank, Syndicate Bank, Dena Bank, Indian Bank and Bank of Baroda etc.

Axis Bank Agri & Rural Loans

Axis bank provides different types of agriculture loans for various purposes to the farming community. It offers tractor loans, gold loans, farmer funding, etc. For more details you can visit your nearest Axis bank branch check it online at axisbank.com

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