What are the types of agriculture loans available?

Indian agriculture has a wide range of credit options available to meet the varied financing needs of farmers. Some of the popular agriculture loan products include:

• Land Purchase Loans: Longer tenure loans to fund the purchase of new farmland, especially for young farmers looking to expand operational holdings.
• Crop Loans: Short-term working capital loans to finance critical inputs for the crop cycle like seeds, fertilisers, equipment, labour costs and more. Easy eligibility makes it the most available agriculture credit product.
• Farm Mechanisation Loans: Funds the purchase of modern machinery and technology interventions across the crop cycle to boost productivity, such as automated irrigation, GPS-enabled tractors, harvesters, etc.
• Livestock Loans: Finance livestock purchase and associated infrastructure development, such as the construction of dairy sheds, cattle feed stores, etc., to boost productivity.
• Solar Pump Loans: Enables energy-efficient solar pump systems for reliable and cost-effective irrigation to support multiple cropping cycles.

Applicants are recommended to evaluate multiple lending institutions on interest rates and eligibility policies before applying for the agricultural loan product best suited to fulfill their unique capital requirements.