Agriculture loans

Agriculture Working Capital Loans 

As the name implies, these loans are offered to farmers and other individuals engaged in agri-related activities to meet their various working capital requirements. These loans are used to meet expenses that are not covered by the Kisan Credit Card scheme. 
Notable Features of Agriculture Working Capital Loans:

• 
  Objective – To meet the working capital requirements of farmers.
  
• 
  Loan Quantum – Higher than the amount offered in the KCC and lesser than term loans. 
  
• 
  Eligibility – Offered to farmers and others engaged in agri-related activities like seed sellers, fertiliser dealers, mechanised machinery sellers, etc. 
  

Note that some banks offer the facility to increase the amount provided in the KCC scheme, so that farmers can use it, instead of going for a working capital loan.

4. 
   Agriculture Gold Loans 
   

Gold loans are one of the most availed loans in India, as Indian families own considerable gold ornaments, compared to other assets. Agriculture gold loans work the same way as regular gold loans. The only difference is that it’s offered only to farmers. 
Notable Features of Agriculture Gold Loans:

• 
  Since it’s a secured loan, the interest rates are as low as 4% per annum. 
  
• 
  The loan tenure ranges from 1 month to 12/24 months, depending on the lender. 
  
• 
  Minimal documentation and hassle-free application process. 
  
• 
  Eligibility – Farmers and other individuals engaged in agriculture and agri-related activities. 
  
• 
  Banks offer loans up to 75 - 80% of the market value of the gold ornaments. 
  

5. 
   Farm Mechanisation Loan
   

Farm mechanisation loans are offered to farmers to purchase/repair/upgrade farm machinery. Some banks provide general farm mechanisation loans, while others offer sub-category loans like drip irrigation loans, tractor loans, combine harvester loans, etc.