Different types of Finance available to Agriculture Sector Short Term, Medium Term and Long Terms loans to individuals, SHGs, JLs, for Agriculture & related activities like dairy, fishery, piggery, poultry, bee keeping etc.
Loans can be availed by small &marginal farmers for
- Purchase of Land.
- Loans for pre-harvest & post-harvest activities.
- Working capital requirements.
- Investment requirements for agriculture & allied activities.
- Term loans for financing productions.
Farmers can avail loans from co-operatives like PACS and Farmers’ Service Societies for
- Purchase & Distribution of fertilizers and pesticides.
- Agro-based processing units with investments upto Rs. 10 crore.
Good news for tenant farmers, share croppers, oral lessees and other farmers! It is mandatory for Banks to give Agricultural loans up to Rs.100000/- without taking any margin / security.
- For loans up to Rs. 50000/- ‘No dues certificate’ is not necessary- declaration from the farmer is sufficient.
- Agricultural loans up to Rs. 3 lakh available at 7% p.a; For prompt repayers – 2% interest subsidy by Govt. of India.
- Govt. of Karnataka also gives interest subsidy of 3% for short term loans upto Rs. 50000/- .