One of the largest and oldest public sector banks in India, Canara Bank has a wide variety of loan schemes to benefit the weaker sections of the society. The bank offers several agriculture loan schemes to help farmers and others engaged in agriculture and allied activities. Here, in this guide, you can find the complete list of agriculture loan schemes from Canara Bank.

Who can avail agriculture loans from Canara Bank? 

Canara Bank offers various loan schemes to benefit:

  • Individual farmers and agriculturists.

  • Corporate firms, NGOs engaged in agriculture and allied activities.

Top 10 Agriculture Loan Schemes offered by Canara Bank 

  1. KCCS (Kisan Credit Card Scheme) 

Kisan Credit Card Scheme is one of the most popular agriculture loan schemes in India. Canara Bank is the pioneer of the Kisan Credit Card Scheme that is now available at several other banks in the country. 

Salient Features of the Scheme:

  • It offers single-window credit assistance to farmers for various requirements like:

    • To meet short-term credit needs for the cultivation of crops 

    • Farmer’s household consumption expenses

    • Post-harvest expenses

    • For investing in sprayers, irrigation sets, pump sets, dairy animals, etc.

    • Working capital to maintain farm assets and to carry out crop cultivation 

  • Eligibility

    • All individual farmers, SHGs, Joint Group of farmers, etc. 

  • Once approved for the scheme, the farmer will be issued with a loaded RuPay debit card that they can use to pay for their various expenses. 

  1. Crop Loans 

Crop loans are offered to farmers to meet seasonal requirements like the purchase of seeds, pesticides, fertilizers, labour charges, irrigation charges, etc.

Salient Features of the Scheme:

  • Eligibility – Individual farmers, cultivator, tenant or sharecropper

  • Tenure – 9 to 15 months 

  1. Kisan Suvidha Scheme 

Canara Bank offers the Kisan Suvidha Scheme to meet the crop cultivation expenditures, working capital needs, maintenance expenses, and other credit needs of farmers.  

Salient Features of the Scheme:

  • Eligibility: Individual farmers and joint borrowers

  • Nature of the loan:

    • Working capital

    • Investment credit

  • Tenure of the loan:

    • Working capital – 12 to 18 months

    • Investment credit – five years in yearly or half-yearly instalments 

  1. Kisan All-Purpose Term Loans 

Canara Bank offers all-purpose term loans for farmers. This loan helps farmers borrow credit for various needs. The usage of the loan amount can include land development, farm mechanisation, horticulture, irrigation and water conservation projects, and other allied activities.

Salient Features of the Scheme:

  • Eligibility: individual farmers, a joint group of farmers, SHGs, etc.

  • Quantum of Loan: Depends on the project plan submitted by the borrower. Maximum limit is Rs. 20 lakhs. 

  • Tenure: Maximum of 9 years. 

  1. Farm Development Loan 

As the name implies, this loan is offered to farmers to develop their land. Some sanctioned activities include the construction of tanks/ponds, fencing, laying irrigation channels, land reclamation, construction of sheds, farm stores, etc.

Salient Features of the Scheme:

  • Eligibility: The farmer should be the owner of the land and own a minimum of two acres.

  • Repayment period: Ranges from 9 to 15 years

  1. Pumpset Loans 

These loans are offered for the purchase of irrigation pump sets, electrical motors, and other equipment.

Salient Features of the Scheme:

  • Eligibility: To be eligible for this loan, farmers have to obtain a feasibility certificate from the electricity board, and water rights certificate from the concerning authorities. Additionally, this loan is available only to farmers who own their land and have an area of at least two acres.

  • Tenure: Maximum of 9 years.

  • Repayment: In yearly or half-yearly instalments. 

  1. Dairy Loans 

Borrowers can avail dairy loans for the purchase of milch cattle, for the construction of animal shed, for the purchase of cattle feed and fodder and other dairy-related expenses.  

Salient Features of the Scheme:

  • Eligibility – The farmer should have a cattle shed for housing the animals and cultivate green fodder for the animals. Additionally, there should be adequate drinking water and veterinary facilities in the area. 

  • Repayment Tenure – 5 years in monthly/quarterly instalments. 

  1. Drip/Sprinkler Irrigation Loans 

As the name implies, this loan is offered for the purchase of drip irrigation equipment like filters, pressure regulators, drippers, accessories, pipes, and other water-saving modern irrigation equipment. 

Salient Features of the Scheme:

  • Eligibility: The borrower should be the owner of the land.

  • Tenure: 10 to 15 years in yearly/half-yearly instalments. 

  1. Farm Machinery Loans 

This loan is offered to farmers for the purchase of farm machinery like grain threshers, combine harvester, power tiller, tractor, trailer, ploughs, drills, sprayers, dusters, and other equipment needed for agriculture.

Salient Features of the Scheme:

  • Eligibility: For tractors, the applicant should have a minimum of six acres of perennially irrigated land or twelve acres of dry land. 

  • For power tillers and trailers: The applicant should have a minimum of two acres of irrigated land or four acres of dry land. 

  • Repayment tenure: 5 to 9 years, in yearly or half-yearly instalments. 

  1. Loan against Gold Jewellery for Agriculturists 

Canara Bank offers gold loans for farmers to meet their various agriculture-related expenditures. 

Salient Features of the Scheme:

  • The jewels pledged to act as security.

  • The lending value is a maximum of 75% of the appraised value of the loan, as per the lending rate.

  • The repayment tenure is a maximum of 12 months, in monthly/quarterly/half-yearly or lump sum payment.

Other Loan Schemes from Canara Bank

Besides the ten agriculture loan schemes highlighted above, Canara Bank also offers a wide range of other loan schemes for farmers including:

Krishi Mitra Card Scheme Kisan Tatkal Canara Kisan OD (Overdraft)
Bullock/Camel Cart Loans Development Loans for Plantation/Horticulture Farm Forestry Loans
Development Loans for Farm Level Storage Structure Financing for Solar Pumpset for Irrigation Scheme for Agriculturists to Purchase Vehicles
Raising Cross Breed Heifers Sheep & Goat Rearing Loan Poultry and Duck Rearing Loan
Piggery Loan Bee Keeping Loan Program for Financing the Setting up of Agri-Business Centres
Estate Purchase Loan Produce Loans Fishery Loans
Sericulture Loans Lending to MCGs (Micro Credit Groups) Scheme for Financing SHGs (Self-Help Groups) and MFIs (Micro Finance Institutions)
Scheme for Redemption of Debts of Farmers from Non-Institutional Sources Agriculture DRI Loans Purchase of Land for Agricultural Purposes

 

Interest Rates of Agriculture Loan Schemes offered by Canara Bank 

*Note that this list was updated in June 2020 and is subject to change. For the latest interest rates, visit the website of Canara Bank or connect with a Canara loan officer.

S.No. Type of Loan Applicable Interest Rate
1 Agriculture Term Loans up to Rs. 3 lakhs MCLR + 1.40%
2 Agriculture Term Loans above Rs. 3 lakhs and below Rs. 1 crore MCLR + 2.30%
3 Agriculture Term Loans above Rs. 1 crore and below Rs. 2 crores Ranges from MCLR + 2.30% to MCLR +3.50%
4 Agriculture Term Loans above Rs. 2 crores Ranges from MCLR + 2.40% to MCLR +3.75%
5 Agriculture Term Loans above Rs. 5 crores (Requires External Rating) Ranges from MCLR + 1.40% to MCLR + 4.50%
6 Gold Loans for Non-Crop Purposes Ranges from MCLR + 0.45% to MCLR 2.45%
7 Estate Purchase Loans MCLR + 6.55%

 

Documentation Required for Agriculture Loans from Canara Bank 

One of the significant advantages of an agriculture loan from Canara Bank is that the documentation is minimal. Thereby, even farmers who are not literate can benefit from these schemes, without having to go through a lengthy documentation process. 

The actual list of required documents varies based on the loan scheme. Generally, borrowers have to submit the following for all loans:

  • Photo-identity proof – Aadhaar Card, driving license, etc. 

  • Address proof – Ration card, PAN card, electricity/water bill, etc. 

  • Age proof 

  • And other required KYC documents 

Choose Canara Bank for all your Agriculture Financing Needs

Canara Bank is one of the leading lenders to farmers. The bank offers a wide variety of agriculture loan schemes and has a dedicated team to handle agriculture financing. It also has set up an agriculture innovation centre to cater to the multiple needs of farmers.

For further details on any of these schemes, get in touch with your nearest Canara Bank branch.