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Best Agricultural Loan Schemes in India

Agriculture plays a major role in the Indian economy when looking at the contribution of it’s for employment generation and for GDP. Financial assistance/loans are provided by financial institutions for the purpose of providing financial assistance to farmers and agri-businesses. These credits are used to obtain assets, land, machinery and other facilities / services.

Source: Istockphoto.com

Types of Agricultural Loans


We can categorize agricultural loans according to the purpose of giving this loan. Each loan scheme has created for a specific purpose. Let’s identify them.


1. Loans for day to day operations – Also known as “Farm Operating Loans”. Provide for day-to-day needs and for expansion requirements. These loans help to start, maintain, and strengthen farm operations. It also covers the living expenses of the family.

2. Loans for farm ownership – These loans are given to buy farmlands, machinery, and other assets. Also, purposes such as expanding current farm operations are also funded.

3. Loans for farm storage facilities/warehousing – Mostly storage facilities are given for non-perishable agricultural commodities. These loans help to build or upgrade storage facilities in the farm. Also it can be used to purchase a new storage/warehouse.

4. Loans for product marketing – This has been created with the aim of reducing distress of farmers during sell their agriculture produces.


There are some other loan schemes that have been created for farmers such as finance programs for fisheries, subsidies, crop loans, and so on.


Agricultural Loans for India Farmers/Agribusinesses


1. Kisan Credit Card Scheme (KCC)


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This is the most significant loan scheme that National Bank of Agricultural & Rural Development (NABARD) launches to fulfill the financial necessities of agriculture sector. By this monetary support is given to farmers and the quantum of loan depends on several factors such as cost of cultivation, cost of maintenance, etc. KCC card can be used to withdraw money for farm and domestic purposes. KCC also offers crop insurances and subsidies for those who have applied for the KCC. Also KCC card holders can borrow fund amounts up to Rs. 3 lakhs at a 3-4% interest per annum.

Kisan Credit Card Application Form


2. Loan against Warehouse Receipt


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This scheme has been created to finance against the warehouse receipt that is given for the farmers when they store their produce in a Warehousing Development and Regulating Authority (WDRA) accredited warehouse. Therefore, loans up to 70% of collateral value of your stored produce can be gotten. Long repayment periods are provided (up to 12 months).



3. Kisan Shakti Yojana

This is provided by HDFC Bank aiming for financing to large farmers who are having

additional income via non-farm activities.

Source: YourStory

4. Minor Irrigation Scheme

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Under this scheme, loans are provided for installation of irrigation systems such as lift irrigation, drip irrigation, sprinkler irrigation, well irrigation etc. Some banks in India provide around 85% of the project cost. Different banks give different type of loan facilities/financial assistant for minor irrigation.

Eg: Union Bank of India

Bank of India

Bank of Maharashtra

State Bank of India

IDBI Bank


Best Places to Apply for Agricultural Loans in India


1. HDFC Bank– This bank provides financial assistant to farmers and agribusinesses as loan schemes. They have Kisan Loans and Kisan Accounts that are specially created for farmers.

  • Kisan Loans -

o Kisan Gold Card-Agri Loan

o Small Agri-business Loan

o Pledge Loan – Warehousing Receipt

  • Kisan Accounts -

o Kisan Club Savings Account

o Fixed Deposit

o Recurring Deposit

Click Here for more details.


2. SBI Bank – They are helping farmers across the India via 16000 plus branches. This is one of pioneers in agriculture financing in India. SBI bank provides different types of agriculture loans as follows.

  • Crop Loan (KCC Scheme)

  • Agri Gold Loan for Crop Production

  • Multi-Purpose Gold Loan

  • Farm Mechanization Loan

o Tractor Loan

o Combine Harvester Loan

o Drip Irrigation Loan

  • Dairy Loan (Dairy Farm Business Loan)

  • Poultry Loan

  • Fisheries Loan

  • Produce Marketing Loan

  • Loans for Setting up of Agri Clinic and Agri Business Centres

  • Land Purchases Scheme

  • SBI Krishak Uthan Yojana

  • Scheme for Debt Swapping of Borrowers

Click Here for more details


3. Union Bank of India – They support farmer by way of both short term credit and long term credit as a financial assistance. Some prominent credit facilities are as follows.

  • Crop Loan

  • Union Gold Loan

  • Loan- Warehouse Receipt (Farmers/Traders)

  • Kisan Credit Card

  • Minor Irrigation

  • Farm Mechanization

  • Construction of Cold Storage

  • Agri. Clinics & Business Centers and etc.

Click Here for more details


4. Allahabad Bank – This bank offers Akshay Krishi Scheme that comes under Kisan Credit Card. In their own version of KCC, they have include an Allahabad Bank Potato Growers Credit Card Scheme with the aim of providing financial support to meet their requirements. Also Warehouse Receipt Financing, Debt Swapping scheme, etc. like other services are offered by Allahabad Bank.

Click Here for more details






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