India is an agrarian society. A vast section of our economy depends on agriculture and allied industries. One of the biggest hurdles facing farmers is that agriculture is highly seasonal. Hence, they are forced to rely on loans and other financial assistance to meet their various short-term and long-term capital requirements. 

Here, in this guide, we shine the spotlight on the top banks in the country that offer a helping hand to farmers using easy to avail agriculture loans. 

What are agriculture loans? 

Agriculture loans are low-interest loans offered by banks to farmers to meet their various capital needs. Agriculture loans are generally used for:

  • Purchasing agricultural land

  • Purchasing seeds, fertilizers, pesticides and other equipment 

  • To pay for the operating expenses

  • To purchase livestock, feed, and other requirements

  • To help with the marketing of agricultural produce 

  • To pay for the warehouse and storage expenses 

Where can you get agricultural loans in India? 

Most commercial banks, rural and urban co-operative societies, provide loans to farmers. Farmers can opt for short-term loans to make operations economically viable and long-term loans for investment purposes. The interest rates for agricultural loans in India are significantly lower when compared to other loans. 

Now, let’s take a look at the top banks that offer agriculture loans for farmers.

  1. State Bank of India 

As the leading public sector bank in India, SBI offers a wide array of agri loans. With over 16,000 branches spread across the country, SBI offers various loans to meet the needs of farmers in India. 

Some of the popular agriculture finances from SBI include:

  • Kisan credit card – The credit card is available in the form of an electronic Rupay card. The farmer can use this card to withdraw cash from SBI bank ATMs to fund various items like fertilizers, etc. 

  • Crop loan – The funds availed using this loan can be used to meet crop production expenses, post-harvest expenses and other contingencies. 

  • Gold loan for crop production – Farmers can easily pledge their gold ornaments at attractive rates to loans for meeting various expenses related to crop production. 

  • Farm mechanization loan – Funds disbursed using this loan can be used to purchase tractors, harvesters and to install the equipment for drip irrigation. 

  • Dairy loan – This loan is offered to dairy societies for infrastructure purchase and to modernize equipment like automatic milk collection system, bulk chilling units, transport vehicles and more. 

  • Poultry loan – This loan is offered to new and existing poultry farmers for the construction of sheds, feed rooms and other equipment. 

  • Fisheries loan – This loan is provided for the purchase of fish seeds, fishing nets and other equipment. 

Besides these loans, SBI also offers various other schemes for the benefit of farmers like marketing produce loans, assistance for setting up of agri clinics and agribusinesses, land purchase scheme, SBI Krishak Uthan Yojana, scheme for debt swapping of borrowers and more. To check your eligibility for these loans, visit the nearest SBI branch for further details. 

  1. Allahabad Bank 

Allahabad Bank is another nationalized bank in India, with a long history spanning over 150 years. The bank offers the following three different types of loan products for farmers:

  • Akshay Krishi – It’s a unique credit support scheme that offers timely support to farmers to meet capital requirements for cultivation and other needs. This loan offers cash credit, working capital as well as term loan based on requirements. 

  • Potato Growers Credit Card Scheme – It’s another unique loan product from Allahabad Bank that offers timely financial support to farmers to meet their cultivation needs. 

  • Tractor/power tillers loan scheme – Under this loan product, Allahabad Bank has tie-ups with various tractor manufacturers and helps farmers purchase tractors and power tillers at subsidized costs. 

To know more details about these loan products, visit the website of Allahabad Bank or the nearest branch. 

  1. Punjab National Bank 

Punjab National Bank offers an array of credit services to meet the diverse requirements of different types of farmers. Some of the primary agriculture loan products from the bank include:

  • Finance for farmhouse construction

  • Loans for the purchase of estates and orchards

  • Vehicle financing for agriculturists and farmers 

  • Loans for water, hygiene and sanitation requirements 

  • Finance for dairy development, dairy Vikas card 

  • Loans for setting up of biogas plants, development of wasteland, forestry development programs, minor irrigation, piggery development, sericulture, apiculture (beekeeping), fisheries development, sheep and goat breeding and rearing

Besides these loan products, PNB also offers various credit card schemes for farmers like the PNB Kisan Tatkal card yojana, PNB Kalyani card scheme and more. 

  1. ICICI Bank 

As one of the leading private sector banks in India, ICICI bank offers a wide range of agriculture loans to meet the capital needs of farmers and other individuals engaged in allied agricultural activities. The bank offers term loans for the purchase of irrigation equipment, livestock and other agricultural requirements. 

Agriculture loans from ICICI Bank help in meeting both the short-term and long-term credit needs of farmers. Some of the popular agriculture loans at ICICI bank include:

  • Retail Agri Loan – Also, known as Kisan credit card, it’s a short-term loan that helps farmers meet their day-to-day cash requirements for various farming activities. 

  • Agri Term Loan – It’s a long-term loan that helps farmers meet their capital needs like purchasing big-ticket agricultural equipment or livestock. Farmers can repay the loans in three to four years, in monthly/half-yearly/yearly installments. 

  1. Axis Bank 

Axis Bank offers a wide range of timely credit facilities to farmers to help them meet their cultivation, investment and farm maintenance needs. Over the years, Axis Bank has built a solid reputation as a farmer-friendly bank, thanks to its array of innovative credit services and other products. 

Some of the popular agri loans from Axis Bank include:

  • Farmer Funding – Kisan Power (for horticulture projects), Kisan Matsya (for fish and prawn cultivation), Poultry Power (for poultry farmers) 

  • Warehouse receipt loans

  • Tractor loans

  • MSME Samriddhi loans 

  • Loans for agri trader and processors 

  • Microfinance loans for farmers 

  • Gold loans

Additional Reading: Agriculture loan interest rates

  1. HDFC Bank 

As one of the top private sector banks in India, HDFC has an array of affordable loans for agricultural businesses, from farmers to other allied activities. The bank offers need-based loans to farmers, right at their doorstep. HDFC bank is focused on expanding its rural network by making it easy for farmers to avail of various credit facilities from the bank. 

Some of the popular agriculture loans from HDFC Bank include:

  • Kisan gold card

  • Small agribusiness loan 

  • Pledge loan warehousing receipt 

Whether farmers are looking to avail long-term loans for farming activities, horticulture, animal husbandry, poultry, dairying, warehousing, etc., - the bank offers customized loan products to suit various requirements. 

  1. Bank of Baroda 

As one of the most trusted nationalized banks in India, Bank of Baroda offers a wide range of credit facilities to meet the capital needs of farmers. The bank classifies agriculture as a “priority sector” and offers various loan products like:

  • Advances to food and agro-based industries 

  • Finances for tractors and other heavy agriculture machinery 

  • Agri-clinics and agribusiness centers by agriculture graduates 

  • Baroda Kisan credit card 

  • Financing development of dairy, poultry, horticulture and fisheries 

  • Financing construction of farm buildings and structure

  • Land development loans

Additional Reading: Agriculture loan in Canara bank


Choose the Right Lender and Meet your Agriculture Capital Needs 

As a farmer and agriculturist, you can approach any of the seven banks mentioned above, to avail hassle-free loans. Besides these banks, other banks like UCO Bank, Oriental Bank of Commerce, Indian Overseas Bank, Syndicate Bank, Vijaya Bank and Bank of Maharashtra also offers easy credit facilities for farmers. 

Look for banks that offer simple documentation, easy eligibility, flexible repayments, affordable interest rates, zero hidden charges and quick processing to get loans quickly. You can visit the nearest branch or the website of your preferred lender for further details.