Agriculture Loan Interest rates, Eligibility and Schemes

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Agricultural Loan 
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Description

• Agricultural loans are availed by farmers to fund
  seasonal agricultural routines or activities
  related to farming such as dairy, animal farming,
  and fish farming. An agricultural loan can fulfil
  seasonal agricultural activities like purchasing
  agricultural land or tools. These funds can
  smoothen the process of  sowing, weeding,
  fertilizers, seeds, insecticides, and engaging
  labour for cultivation and harvesting the crops.
• Apart from prominent banks, the Government of
  India also helps farmers to have substantial
  credit to increase their agricultural
  productivity. Besides short-term and long-term
  agricultural loans, banks also provide credit
  cards to the farmers. 

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Agricultural Loan Interest Rate

• The interest rates for the agricultural loan is
  based upon the loan scheme that a borrower
  selects. The interest rate for the agricultural
  loan usually starts from 8.80 p.a. Besides this,
  a borrower has to pay a processing fee at the
  time loan disbursal, usually the processing fee
  for agricultural loan ranges between 0 to 2.

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How to Calculate EMI for Agricultural Loans?

• Prior to borrowing an agriculture loan, it is
  important to calculate the payable EMI. By using
  an online EMI calculator, you can check the
  details of your monthly instalments.  As you
  enter the preferred loan amount, loan tenure, and
  interest rate, the EMI calculator shows the
  details as EMIs, total interest, and total amount
  that you will pay during the loan tenure. 

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How to Apply for An Agricultural Loan?

• Before availing an agricultural loan, make sure
  you research about it online and apply for it.
  When you apply for an agriculture loan by
  visiting the nearest branch of the lender, please
  carry your important documents as it will
  smoothen your agricultural loan application
  process. However, many lenders offer you to apply
  the same loan via online mediums. Here, if you
  apply for an agricultural loan online, go to the
  official website of the lender and fill your
  essential details to process your loan
  application process. Before the loan disbursal,
  the lender will probe your application and once
  it gets approved, you will get loan amount in
  your account.

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Features and Benefits of Agricultural Loans

• Simplified Documentation At the time of applying
  for an agriculture loan, the applicants have to
  submit fewer documents such as a valid photo
  identity proof and residence proof. These
  documents can be attached to the application
  form.
• Quick Processing The application process and
  loan disbursal takes lesser time. Once the lender
  gets convinced with your application and
  documents submitted with your application, you
  get quick loan disbursement in your account.
• Lucrative Interest Rate Usually the interest
  charged on agricultural loans starts from 8.80
  which is a good option for farmers as compared to
  other forms of loans.
• Flexible Loan Repayment Alternatives Many
  agricultural loan providers offer short-term and
  long-term credit solutions. Therefore, it gives a
  farmer to choose a desired loan product as per
  financial requirements and repayment capacity.
• No Hidden Charges Apart from processing fee and
  pre-payment charges, there are no hidden charges
  when an applicant applies for an agricultural
  loan. However, lenders usually inform potential
  borrowers about the other charges.

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