Agriculture is the backbone of India’s economy, and access to credit is crucial for farmers. One of the most beneficial financial solutions available is a loan against agriculture land. This type of loan provides farmers with the necessary funds for farming activities, purchasing equipment, irrigation, or even personal needs.
Table of Contents
- What is a loan against agriculture land?
- Top banks and financial institutions offering these loans
- Eligibility criteria and required documents
- Interest rates and repayment options
- Benefits of taking a loan against farmland
- FAQs about agriculture land loans
What is a Loan Against Agriculture Land?
A loan against agriculture land is a secured loan where farmers or landowners can pledge their farmland as collateral to avail funds from banks or financial institutions. These loans are usually offered at lower interest rates compared to personal or business loans.
💡 Key Features of Loan Against Agriculture Land:
- Lower interest rates than unsecured loans
- High loan amount based on land value
- Flexible repayment tenure
- Can be used for farming, irrigation, livestock, or personal needs
- Available from banks, NBFCs, and cooperative institutions
Top Banks Offering Loan Against Agriculture Land in India (2025)
1. State Bank of India (SBI) Agri Loan
✅ Loan Amount: ₹50,000 – ₹10 crore
✅ Interest Rate: 7% – 11% p.a.
✅ Tenure: Up to 7 years
✅ Processing Fee: 0.5% – 1%
💡 Why Choose SBI?
- Low processing fees
- Quick disbursal process
- Available for all types of farmers
2. HDFC Bank Agri Loan
✅ Loan Amount: ₹1 lakh – ₹5 crore
✅ Interest Rate: 8% – 12% p.a.
✅ Tenure: Up to 10 years
✅ Processing Fee: 1%
💡 Why Choose HDFC?
- High loan amount eligibility
- Competitive interest rates
- Digital loan application process
3. ICICI Bank Agriculture Loan
✅ Loan Amount: ₹50,000 – ₹25 crore
✅ Interest Rate: 8.5% – 13% p.a.
✅ Tenure: Up to 15 years
✅ Processing Fee: 1% – 2%
💡 Why Choose ICICI?
- Long repayment tenure
- Customizable loan plans
- Special schemes for women farmers
4. Bank of Baroda Kisan Credit Card Loan
✅ Loan Amount: ₹25,000 – ₹50 lakh
✅ Interest Rate: 7% – 10.5% p.a.
✅ Tenure: Up to 7 years
✅ Processing Fee: 0.5% – 1%
💡 Why Choose Bank of Baroda?
- Special subsidies for small farmers
- Minimum documentation
- Quick approval process
Eligibility Criteria for Loan Against Agriculture Land
To apply for a loan against agriculture land, you must meet the following criteria:
✅ Age: 18 – 70 years
✅ Ownership: The land must be in your name
✅ Land Type: Only cultivable land is accepted
✅ Loan Purpose: Farming, equipment, irrigation, or personal needs
✅ Income Proof: Farming income proof may be required
Documents Required
📌 Personal Documents:
- Aadhar Card, PAN Card, Voter ID
- Passport-size photographs
📌 Land Ownership Documents:
- Land title deed
- Encumbrance certificate
- Land tax receipt
📌 Financial Documents:
- Bank statements (last 6 months)
- Income proof (if required)
Interest Rates and Repayment Options
Interest Rates for Loan Against Agriculture Land
The interest rate varies based on the bank, loan amount, and repayment period. Below is a general breakdown:
| Bank | Interest Rate |
|---|---|
| SBI | 7% – 11% p.a. |
| HDFC | 8% – 12% p.a. |
| ICICI | 8.5% – 13% p.a. |
| Bank of Baroda | 7% – 10.5% p.a. |
📌 Factors Affecting Interest Rates:
- Loan tenure (longer tenure may have higher interest)
- Credit history and land value
- Farmer subsidies & government schemes
Benefits of Loan Against Agriculture Land
✅ Low-Interest Rates: Compared to personal loans ✅ High Loan Amount: Based on land value ✅ Flexible Repayment: Up to 15 years ✅ Government Subsidies: For small & marginal farmers ✅ No Restriction on Usage: Can be used for farming or personal needs
How to Apply for a Loan Against Agriculture Land?
📝 Step 1: Check Eligibility Ensure you meet the age, land ownership, and income requirements.
📂 Step 2: Gather Required Documents Keep personal ID proof, land ownership papers, and bank statements ready.
🏦 Step 3: Visit the Bank/NBFC Choose the best bank based on interest rates and processing fees.
💳 Step 4: Loan Approval & Disbursement The bank verifies documents, conducts a land valuation, and disburses the loan.
FAQs About Loan Against Agriculture Land
1. Can I get a loan against my agricultural land for personal use?
Yes, many banks allow farmers to use the loan amount for personal or farming needs.
2. What happens if I fail to repay the loan?
If you default, the bank may take legal action or auction the land.
3. Is CIBIL score required for a loan against farmland?
Not always. Some banks approve loans based on land value instead of credit score.
4. Can I apply online for a loan against agricultural land?
Yes, many banks offer online application facilities.
5. Are there government schemes for agriculture land loans?
Yes, schemes like PM Kisan Credit Card offer subsidies for farmers.
A loan against agriculture land is an excellent financial solution for farmers who need quick access to funds for farming, equipment, irrigation, or personal expenses. With lower interest rates, flexible repayment options, and high loan amounts, this type of loan provides much-needed financial support without the burden of high-cost borrowing.
Choosing the right lender is crucial, as different banks and NBFCs offer varying interest rates and terms. Farmers should compare loan options, check eligibility, and ensure they have all the required documents before applying. Additionally, taking advantage of government schemes and subsidies can help reduce costs and improve financial stability.
By using the loan wisely and ensuring timely repayments, farmers can not only expand their agricultural operations but also build a strong credit history for future financial needs. If you’re looking for the best loan against agriculture land, research thoroughly and choose the lender that best meets your financial requirements.
