Agricultural Credit
Agricultural Credit
What to Do?
- To save themselves from the clutches of money lenders, farmers can avail loan facility from banks.
- Loan facility is available through a large network of Commercial Banks, Regional Rural Banks and
- Cooperative Credit Institutions in the country to fulfill the crop loan and term loan needs of the farmers.
- Ensure timely repayment of bank loan.
- Proper record of loan should be maintained by farmer.
- Utilize the bank loan for actual purpose for which bank loan is taken.
What Can You Get?
A: Credit Facility to Farmers
| S.No | Credit Facility | Quantum of Assistance |
| 1 | Interest Assistance | Crop loan upto 3.00 lakhs at 7% rate of interest. This interest rate becomes 4% due to 3% interest subvention incentives provided to those farmers who repay crop loan on time |
| 2 | Collateral / security-free loan | No need of collateral security for farm loan up to 1.60 lakh |
| 3 | Kisan Credit Card | Farmers can avail crop loan through Kisan Credit Card. Loan /credit limit is fixed on the basis of crop sown and area under cultivation. Kisan Credit Cards are valid for 3-5 years. Farmers are also provided risk coverage in the event of accidental death/ disability. Crop coverage loans are covered under the Crop Insurance Scheme. |
| 4 | Investment Loan | Loan facility to the farmers is available for investment purposes in the areas viz. Irrigation, Agricultural Mechanization, Land Development, Plantation, Horticulture and Post-Harvest Management |
Whom to Contact ?
Nearest Commercial Banks, Regional Rural Banks and Cooperative Credit Societies
Last Modified : 3/2/2020
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