Agriculture Loans in India

Some of the agricultural loan schemes offered by the Indian government to help farmers improve their productivity and income include:

Kisan Credit Card (KCC)

The Kisan Credit Card scheme provides short-term credit to farmers. It allows farmers to access credit for crop production and other agricultural activities. The card acts as a flexible credit line, and interest rates are often lower than traditional loans.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

This scheme provides crop insurance to farmers, protecting them against yield losses due to natural calamities, pests, and diseases. Premiums are typically subsidized by the government, making it affordable for farmers. The PMFBY is a government-funded crop insurance scheme. The PMFBY provides financial assistance to farmers in the event of crop failure due to natural calamities.

Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

The PMKSY is a government-funded scheme that provides financial assistance for irrigation projects. The PMKSY is designed to improve irrigation facilities in rural areas and to increase agricultural productivity.

Paramparagat Krishi Vikas Yojana (PKVY)

The PKVY is a government-funded scheme that promotes organic farming. The PKVY provides financial assistance to farmers who adopt organic farming practices.

National Mission for Sustainable Agriculture (NMSA)

The NMSA is a government-funded scheme that promotes sustainable agriculture practices. The NMSA provides financial assistance to farmers who adopt sustainable agriculture practices, such as water conservation and crop diversification.

Interest Subvention Scheme for Short-Term Crop Loans

Under this scheme, farmers receive an interest rate subvention of 2% per annum. If farmers repay their short-term crop loans promptly, they are eligible for an additional 3% interest subvention, effectively reducing the interest rate to 4%.

National Agriculture Insurance Scheme (NAIS)

This insurance scheme provides coverage for various crops and compensates farmers for losses due to natural disasters like drought, floods, and cyclones.

MUDRA Loans

While not exclusive to agriculture, the Pradhan Mantri Mudra Yojana provides financial support to small and micro-enterprises, including agricultural activities. It offers loans under three categories: Shishu, Kishor, and Tarun.

Agricultural Term Loans

Many nationalized and cooperative banks offer term loans for the development of agriculture-related infrastructure, purchase of machinery, and other long-term farming needs.

Warehouse Infrastructure Fund

This scheme helps create and upgrade agricultural warehousing infrastructure. It allows farmers to store their produce in modern, efficient facilities and obtain loans against the stored produce.

Rashtriya Krishi Vikas Yojana (RKVY)

Although not a loan scheme directly, RKVY provides funds to states for various agricultural development projects, including irrigation, infrastructure, and mechanization. Some of these projects indirectly benefit farmers by improving agricultural productivity.

Agricultural Debt Waiver and Debt Relief Scheme

This was a one-time initiative to waive off a portion of farmers' outstanding agricultural loans. It was implemented in the past, but it's essential to check whether any similar schemes are currently active.

NABARD Schemes

The National Bank for Agriculture and Rural Development (NABARD) offers various loan and credit facilities to farmers and rural development projects.