Farm loans are meant to provide farmers with the essential financial aid that helps in carrying out farming or agricultural and related activities. The loan application and approval process under this category is very simple with minimum formalities. Have a glance at the various kinds of loan schemes under this farm loan sector.

a)NORMAL LENDING(Ordinary Loan)

This is an ordinary farm loan, offering Rs. 3.0 lakhs for all agricultural purposes for a repayment period of 5 to 10 years. 50% of land value or eight times post-development net income is the eligibility criteria in order to get the loan.

b) FARM SECTOR SCHEME 

This is a Rs.1 crore offered loan scheme under which the loan can be granted for all agricultural purposes like (LD, MI, FM, P&H, Floriculture, Medicinal Plants, AH, Fisheries, Ornamental Fisheries, Bio-gas, Apiary, Agricultural Machinery or Processing Equipment, Go Downs, etc.). This loan requires repayment within 3 to 15 years, and it has a grace period of up to 7 years, depending on purpose. The borrowers' margin is fixed at 5 to 15%. For this loan, the eligibility criteria are 50% of land value or eight times post-development net income.

c) Agricultural land purchase scheme (Under ARF(FS))

 This scheme grants Rs. 1 crore for the purpose of agricultural land purchase and includes 50% recovery under the said scheme for eligibility. The repayment period of this loan is up to 12 years, and the grace period is up to 24 months. There is a borrowers' margin of 20%. It sets the loan eligibility criteria at 80% of land value where additional security is offered or 60% of land value where no additional security is offered.

d) Homestead farming ( Under ARF(FS) )   

This is a loan scheme contains Rs. 5.0 lakhs as the loan amount for all agricultural purposes. The loan amount has to be repaid within a period of 3 to 10 years and with 50% land value will make the applicant eligible for this loan.

e) KissanSamriddhi Scheme (KSS)

The KSS loan helps the farmers to get Rs. 10,00,000 for their agriculture and allied activities with a repayment period of 5 years. It has a borrowers’ margin of 5 to 15%. It demands 50% of the value of property offered as security for the loan approval.

f) KissanSamriddhi Scheme-Plus (KSS-Plus) 

The KSS-Plus loan helps the farmers to get Rs. 10,00,000 for their agriculture and allied activities, JLG, or Agro Processing with an affordable repayment period of 7 years. It has a borrowers’ margin of 5 to 15%. It requires 50% of the property value offered as security or as a valuation norm to get the loan approval.

g) Haritha Hybrid Scheme

This scheme has Rs. 1 crore as the loan amount. The purpose of the loan should be agriculture and allied activities or FM. It has to be repaid within a period of up to 9 years. It has a six-month grace period. The borrowers' margin is fixed at 5 to 15%. It needs 50% of the property value offered as security.

h) Agri-clinics and Agri-Business Centers

This scheme guarantees a financial aid of Rs. 20.0 lakhs for the establishment of agri-clinics and agri-business centres with the goal of creating self-employment opportunities for unemployed agricultural graduates. This scheme also provides expert advice and services to farmers. The borrowers' margin under this scheme is nil up to 5 lakhs and above 5 lakhs, 10 to 15% as the borrowers' margin . The loan repayment has to be made within a period of 5 to 10 years. It has a grace period of two years. There is ssecurity need for 50% of land value.

i) Two-wheelers (Under ARF (FS)) for new vehicles only.

This is the vehicle loan, which allows you to borrow up to 85% of the total cost of a new vehicle. This is intended to help agriculturists with cost-effective transportation. The loan has to be repaid within 2 to 5 years. 15% is the borrower's margin for this loan scheme. It demands 100% of the land value and hypothecation of the vehicle as security in order to sanction the loan.

j)Joint Liability Group loan

This is a group loan of up to Rs. 50,000 per person for all purposes except housing. It has to be repaid within 3 to 5 years.