What is an agricultural loan scheme?

Agricultural loan schemes refer to special lending programmes designed by banks, NBFCs, and financial institutions to provide credit access to farmers in India. These schemes aim to support agricultural activities and related sectors.

Some major agricultural loan schemes include the Kisan Credit Card (KCC), Pradhan Mantri Fasal Bima Yojana (PMFBY), National Bank for Agriculture and Rural Development (NABARD) schemes, and Pradhan Mantri Krishi Sichayee Yojana (PMKSY).

These offer short-term and long-term credit for cultivation expenses, as well as activities like dairy, poultry, beekeeping, fisheries, etc. Moreover, schemes like the Pradhan Mantri Fasal Bima Yojana provide crop insurance to protect Indian farmers against crop losses due to diseases, pests, and natural calamities.

The focus of these schemes is on providing timely and adequate credit to farmers at a reasonable interest rate. They aim to meet expenses related to agriculture as well as help farmers adopt new technologies for higher productivity and income. Use an agriculture loan EMI calculator to learn about the interest payable and the EMI to understand how much you would pay for the loan amount.