What types of agricultural loans are available?

There are several types of agricultural loans available to farmers in India. They include:

1. Crop Loans: Crop loans provide short-term financing to cover the costs of seeds, fertilisers, pesticides and other aspects required during the cultivation season. The loans are sanctioned for one crop cycle and have flexible repayment options after harvest.
2. Land Purchase Loans: Land purchase loans help farmers expand their cultivation area by facilitating the purchase of agricultural land, orchards, farmland, etc. Based on eligibility, funds can also be used for horticulture, floriculture, and other allied farming activities.
3. Farm Mechanisation Loans: These are usually long-term loans that enable farmers to purchase farm equipment like tractors, power tillers, harvesters, etc. Farm mechanisation loans improve productivity and efficiency through modern agricultural practices. Tractor loans are the most availed loans under farm mechanisation.
4. Livestock Loans: Livestock loans provide financing to purchase dairy animals and poultry, construct cattle sheds, buy animal feed etc. Repayment schedules are flexible considering the gestation period of animals to reach maturity.
5. Solar Pump Loans: These loans enable farmers to install solar powered irrigation pumps, with loan repayment tied to increased income from assured irrigation.
6. Warehouse Receipt Loans: Farmers can obtain credit against agricultural produce stored in certified warehouses. The warehouse receipt acts as collateral for short-term loans until the farmer sells the produce at optimal prices.