Available Farming Loan Programs for Indian Farmers


It can be stated without hesitation that agriculture is the backbone of the Indian economy. However, the average farmer often struggles to finance various agricultural activities such as purchasing land, engaging in pisciculture and animal farming. Furthermore, a significant amount of capital is required to acquire essential tools and machinery, including tractors, rakes, shovels, seeders, and tractor implements. Agricultural loans are a vital source of funding that enables farmers to buy inputs such as insecticides, seeds, and fertilizers. Tractors are a substantial investment for farmers across the nation, and many of them look for a suitable loan program to purchase one. If you are interested in learn more about tractors, including high-quality mini tractors that are fuel-efficient, there are resources available to help you make an informed decision.

For this reason, the government of India has been offering financial aid and subsidies to our farmers. The goal is encouraging people to take up farming while facilitating sustained income flow and capital investment. So, if you are looking forward to buying a tractor or need a farming loan in general, go through this article and check out different farming loan programs that you can benefit from. 


Farmers can quickly get different kinds of financial help from all financial organizations in India. The credit for uplifting the agricultural sector and the rural economy goes to the National Bank for Agriculture & Rural Development. Since the 1980s, it has been monitoring and regulating all the banks with regard to credit in this sector. It supports the agriculture sector and works with the Indian government to that end. Many innovative schemes can be credited to NABARD. There is no doubt that these schemes have helped farmers across the country. Even the Kisan Credit Card is a product of NABARD. Farmers have used this facility to fund their farming needs, including purchasing tractors. This development bank aims to offer and regulate credit for promoting handicrafts, cottage industries, small-scale industries and agriculture. It has provided RuPay Kisan Cards to those farmer clients bringing technological improvements to the rural financial sector. 

Kisan Credit Card Scheme

KCC Yojana was started in 1998 so farmers could avail themselves of short-term loans for various purposes. It aimed to help them cover urgent costs during cultivation and maintain equipment. In addition, this scheme offers credits from financial institutions and banks at low-interest rates. If an urgent expense like buying tractors is troubling, you can quickly get short-term loans through KCC. It is a precious tool to support farmers and their farming. 

A marginal farmer can easily get a credit limit of ₹10,000-₹50,000. The interest rate through this scheme ranges between 2% and 7%. One of the key benefits is that loan repayment can be made based on the harvesting season of the crops. In addition, you get a physical card for acquiring funds on credit and withdrawing funds from an ATM. Your credit limit can be extended based on your repayment history. Farmers also receive insurance benefits for financial losses due to accidents, permanent disabilities and accidental death. 

There is a straightforward process to obtain a Kisan Credit Card. You must fill out the form and submit it to the bank along with other documents for identity and address proof. Upon verification and loan sanction, you will receive the KCC. Now, purchase that tractor you need and resolve all your farming complications. Such monetary support can go a long way in fulfilling the provisions of the farming sector. Use this scheme to ease your financial burden or buy farming equipment like tractors, mini tractor and tractor implements.  

Agri-Clinics & Agri-Business Centres Scheme

Ministry of Agriculture & Farmers Welfare has come up with ACABC to create mentoring, subsidies, start-up loans, self-employment opportunities and free training programs. In the last two decades, this scheme has set up 31,720 agri-ventures and trained 75,124 individuals. The Agriculture Infrastructure Fund is helping in training and establishing farmers to scale up their operations or start a new unit. Farmers can avail of a dedicated funding source to integrate innovation into their operations. They can take the help of new-age technologies like AI and IoT to automate their farming tasks. Some of the pros of this fund include interest subvention, incentives and credit guarantee. 

The fund size is estimated to be ₹ 1 Lakh Crore, which will be distributed on an FCFS basis. In addition, the beneficiaries of the scheme include the Federation, APMCs, SHG, start-ups, entrepreneurs, and farmers. For a loan up to ₹ 2 Crores, there is an interest subvention of 3%. With the help of the CGTMSE scheme, you can get a credit guarantee of a loan of up to ₹ 2 Crores. The subvention is offered for seven years, while the moratorium period can go up to 2 years. 

Gramin Bhandaran Yojana

A godown is an important infrastructural unit for farmers. After harvesting the crops, they need a warehouse for storing products. It not only helps in protecting the harvest but also functions as a distribution channel for farmers. You can easily haul products on tractors to different cities and markets. Gramin Bhandaran Yojana targets rural areas to construct and renovate godowns. It offers subsidies to Indian farmers to build storage spaces in hilly, rural and urban areas. In addition, farmers can get pledge loans if they hypothecate their produce. All the terms of such arrangements are in line with the guidelines of NABARD and RBI. This scheme is going to increase the holding capacity of farmers, which in turn will help them in selling their yield at fair rates. They will not be forced to sell the product as they can use storage godowns. 

Dairy Entrepreneurship Development Scheme

DEDS is the brainchild of the Department of Animal Husbandry, dairying & fisheries. It aims to promote the development of modern dairy farms and milk production. It facilitates self-employment opportunities while bringing about reforms in this unorganized sector. You can get loans through DEDS at an interest rate set by the guidelines of RBI. Based on the cash flow and activity type, the repayment period is 3 to 7 years. NABARD, or National Bank for Agriculture & Rural Development, is responsible for enacting DEDS. This scheme will significantly benefit your business if you are into dairy farming. 

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