An agriculture loan is an overdraft facility which could be used to meet the cost of farming, cultivation and working capital activities for agri-business and associated activities. … Agriculture loans are generally low interest loans that farmers can avail to run their farming business more efficiently.
What can an agriculture loan be used for?
An agriculture loan can be availed to:
• Purchase agricultural land.
• Purchase farming and irrigation equipment
• Cover operating expenses
• Purchase cattle and livestock
• Cover storage/ warehouse expenses
• Help with the marketing expenses
In India, Government banks, private banks, co-operative societies, rural and urban banks provide agricultural loans to farmers. Most banks offer Retail Agri Loan – Kisan Credit Card which is a specially designed credit card for farmers. It provides convenient credit for farmers to meet day to day farming requirements.
Another type of loan offered is the Long-Term Loan for agriculture & allied activities. This could be availed for larger expenditure like buying agriculture equipment, cattle etc.
The repayment tenure differs with each lender. You can pay back the loan in convenient monthly/Half yearly/ Yearly instalments as per your budget.
General Benefits of Agriculture loans:
• Simplified documentation
• Easy and convenient loan
• Flexible loan repayment options based on your income
• Attractive interest rates
• No hidden charges
• Quick processing
• Non-mortgage loans are also available with certain lenders