Best Agriculture Loans in India with Interest Rates and Charges

Abha Toppo
Abha Toppo

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.

Many a times, due to shortage of money, farmers are not able to buy good quality seeds, modern machines and equipments. In order to solve such problems various banks provide different types of agriculture loans to the farmers. This article will tell you about top banks that offer agriculture loans and at what interest rate/fees or charges.

Agriculture Loan with Interest Rates

Name of the Bank

Interest Rate

Processing Fee

Andhra Bank (AB Kisan Rakshak)               

13.00% p.a.

As per the lender’s terms and conditions

Federal Bank (Federal Green Plus Loan Scheme)

11.60% p.a.

As per the lender’s terms and conditions

Karur Vysya Bank (Green Harvester)

10.30% p.a.        

As per the lender’s terms and conditions

ICICI Bank (Agri Term Loan)

10.00% - 15.33% p.a.

Up to 2% of sanction limit at the time of disbursement

IndusInd Bank (Crop Loan)

10.15% - 14.75% p.a.

Up to 1% plus service tax

Canara Bank (Kisan Suvidha Scheme)

10.10% p.a.

As per the lender’s terms and conditions

HDFC Bank (Retail Agri Loans)

9.10% - 20.00% p.a.

2% to 4% or Rs.2,500

Central Bank of India (Cent Kisan Tatkal Scheme)

8.70% p.a. onwards

Up to Rs.25,000 – Nil

Above Rs.25,000 - Rs.120/- per lakh or part thereof

Max: Rs.20,000

Union Bank of India (Land Purchase Loan)

8.70% p.a. onwards

Up to Rs.25,000 - Nil


UCO Bank (UCO Kisan Bhoomi Vridhi)

3.10% - 3.50% p.a.

Nil up to Rs.3 lakh


Note: The above-mentioned figures may vary based on the type of loan scheme you select.

Agriculture Loan - Fees  & Charges for

  • 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.

Types of Agriculture Loans/Farm loans

In India we have many banks that help farmers across their designated regions when it comes to agriculture finance, available in exclusive government recognised banks to maintain maximum transparency in loan handling and to ensure that cultivators do not have to deal with paying extra for taking loans from a repetitive bank.

State Bank 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 -


NABARD 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.


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.

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