Top 5 Banks Offering Easy Loans to Farmers
Several banks provide agriculture loans to achieve agricultural purposes, including buying tools or machinery, seeds, land, farm maintenance, crop insurance, etc. Farmers, self-help groups, sharecroppers, and those involved in agriculture activities get the agriculture loan. The lending institutions and types of loans will determine whether the agriculture loan can be secured or unsecured. These are the top Indian banks offering agricultural loans to farmers at the best possible interest rate.
- State Bank of India
State Bank is one of the top agri-financing banks in India that offers agriculture loans to farmers. It provides services to around 1.01 crore farmers in India, with a large network of more than 16,000 branches across India. Here are the main features included in agriculture loans:
- There is no additional fee.
- Minimal interest rates
- No middlemen
- Instant loan approval
A SBI Agriculture loan is offered for various agriculture-related activities, including post-harvest costs, crop production expenses, emergency expenses, etc. This loan is offered for agriculture-related activities as a KCC (Kisan Credit Card). KCC is available in the form of a RuPay card. With these cards, farmers can purchase products at PoS, such as fertilizers, and easily withdraw money from ATMs.
- ICICI Bank
The ICICI Agriculture Bank loan allows farmers to invest in agricultural equipment and purchase farm animals. Within a period of 3 to 4 years, farmers can repay the amount. They can choose EMIs monthly, semi-annually, or annually, depending on their preference. ICICI Agri loans come with an easy documentation process with no hidden charges.
To be eligible for this loan, farmers need to submit an application form with land documents, KYC documents, and post-dated checks in some circumstances. Farmers can also avail of the Kisan Credit Card, which allows them to withdraw from ATMs throughout India. To apply for KCC, he must be between 18 and 70 years of age.
- Punjab National Bank
Punjab National Bank offers financial services to farmers associated with the farmer sector. An individual can take a loan for activities such as purchasing irrigation apparatus, developing wastelands, establishing biogas units, etc.
PNB also provides financial support for warehouse receipts. Farmers get help when there is crop damage due to pests, natural disasters, and other diseases. This program is also known as the Pradhan Mantri Fasal Bima Yojana.
- HDFC Bank
HDFC, one of the leading private-sector banks in India, offers financial benefits to all sectors across the country. They mainly focus on rural areas and mostly serve the agriculture sector. Candidates who are engaged in farming activities such as warehousing, poultry, dairying, animal husbandry, etc. can avail of HDFC agriculture loans.
Further, you can avail of a loan for the supply of various agriculture inputs, including pesticides, fertilizers, micronutrients, seeds, and other micro-irrigation tools.
HDFC is expanding its presence in rural areas in order to provide all types of financial products at reasonable prices to its clients.
- Axis Bank
For many years, Axis Bank has been helping rural communities with innovative financial products. Some of the products are warehouse receipts, Kisan Credit Cards, gold loans, etc. Axis Bank loans also fulfill the requirement of combined agreements between farmers and corporations, so this is the reason they offer contract farming.
Further, they have pisciculture loans for the farmers who are involved in freshwater fish and prawn cultivation.