What is the limit of agricultural loans?

The minimum limit for agricultural loans in India usually ranges from ₹50,000 to ₹1 lakh. This applies to small and marginal farmers seeking short-term credit for crop cultivation expenses under schemes like the Kisan Credit Card (KCC). Financial institutions usually provide up to ₹1 to ₹3 lakhs per individual farmer under KCC. For larger farmers with landholdings above 5 acres, financial institutions may provide term loans up to ₹10 lakhs for activities like horticulture, dairy, poultry, mechanisation, etc. The maximum limit can go up to ₹1 crore based on the scale of operations and repayment capacity.

The total outstanding agricultural loan that can be availed is capped at ₹10 crores per individual, depending on the financial institution and the borrower’s profile. This limit includes all short, medium and long-term loans taken for agricultural and allied activities. However, such a high limit is only applicable for very large corporate farms, agri businesses or farmer producer organisations involved in contract farming.

For most small, marginal and semi-medium farmers, the total loan outstanding would be in the range of ₹1-10 lakhs. Financial institutions conduct due diligence on factors like land holdings, income, credit score, etc., before offering loans within the RBI-prescribed limits. If you would like to know the interest payable and the EMI, use an agriculture loan EMI calculator to make an informed decision.