What can agricultural business loans be used for?

Agricultural business loans provide financing to support a wide range of activities in the agriculture sector. Some common uses of these loans include:

• Establishing food processing units, such as flour mills, rice mills, dal mills, oil mills, etc. Typically, the loan covers the costs of buying land, buildings, machinery, and equipment.
• Creating cold storage and refrigeration facilities to store perishable farm produce like fruits, vegetables, meat, fish, etc. Funds can be used for construction, refrigeration systems and ancillary equipment.
• Establishing dairy units for milk processing and products like paneer, ghee, curd etc. it also finances milch animal purchase, bulk milk chillers and other infrastructure
• Building post-harvest storage infrastructure like warehouses, silos and godowns to store grains, spices, cotton etc
• Developing marketing infrastructure like retail outlets, and packing units to improve sales of produce
• Starting fisheries, including fish farming, hatcheries and other aquaculture activities. The loan can be used for constructing tanks and ponds
• Setting up greenhouses, nurseries, and tissue culture labs for horticulture activities
• Purchasing farm equipment like tractors, power tillers, and harvesters