Agriculture loans

Agriculture Loans: The Definition and Overview 
Agriculture loans in India are offered to farmers for various purposes, like farming and irrigation equipment purchases, crops for cultivation, and other agriculture-associated activities. Besides farmers, these loans are also available to individuals engaged in other agri-related sectors like animal husbandry, horticulture, apiculture, aquaculture, silk farming, and floriculture. 
Agriculture loans are offered at lower interest rates compared to other loans available to individuals. The main objective of these loans is to provide a helping hand to farmers to meet their various cash needs.
Here, in this guide, let’s take a closer look at the types of agriculture loans in India, how to apply, benefits, FAQs, and more. 
Benefits of Agriculture Loans 

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  Competitive Interest Rates – One of the biggest benefits of agriculture loans is that the interest rates are low and start at just 8.80% per annum. 
  
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  Quick Processing – Most lenders process agriculture loan applications within a couple of working days. Once the loan is approved, the amount is disbursed to the borrower’s account within a few working days. 
  
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  Minimal Paperwork – Agriculture loans require minimum documentation. The borrower has to submit only a few primary documents like photo id proof, address proof, land ownership deed, etc.
  
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  Flexible Repayment Tenure – Borrowers can repay the loan as per their convenience. There are both short-term and long-term loans for farmers. 
  
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  No Hidden Charges – Agriculture loans are highly transparent, and all the related fees are mentioned upfront. There are no other hidden charges.
  

Types of Agriculture Loans in India

1. 
   Kisan Credit Card (KCC) /Crop Loans 
   

When it comes to agricultural activities, there are multiple short-term processes like the purchase of seeds, sowing, raising crops, weeding, etc. Generally, farmers don't have enough cash to meet these overheads. Hence, they approach banks frequently for short-term loans.
To simplify the process, banks came up with an innovative lending scheme known as Kisan Credit Card or a crop loan. This scheme is used to finance seasonal and recurring short-term requirements. 
Instead of applying for several short term loans, farmers can use their Kisan Credit Cards to borrow small amounts regularly.