Finance for Agricultural Sector – Overview

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 upto Rs. 100000/- without taking any margin / security.
  • For loans upto Rs. 50000/- ‘No dues certificate’ is not necessary- declaration from the farmer is sufficient.
  • Agricultural loans upto 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/- .