Top Agricultural Loan Company List in Odisha-Agricultural loans are availed by a farmer to fund seasonal agricultural operations or related activities like animal farming, pisci-culture or purchase of land or agricultural tools. This type of loan also helps buying inputs such as fertilizers, seeds, insecticides etc. and engaging labour for cultivating and harvesting the crops.
Top Agricultural Loan Company
Top Agricultural Loan Company List in Odisha-In addition, purchasing of land, or purchasing of agricultural tools, storage of produce and transport, cost of ploughing land for sowing, weeding, and transplantation also are included under purview of agricultural loans.
Types Agricultural Loan Company List
Top Agricultural Loan Company List in Odisha-One can avail a loan for the following activities related to agriculture:
- Running day to day operations
- Buying farm machinery such as tractors, harvesters, et cetera
- Purchasing land
- Storage purposes
- Product marketing loans
Top Agricultural Loan Company List in Odisha-Moreover, these financial aids can be offered in form of grants and subsidies too, which are usually meant to protect the farmer in an event of crop damage or loss of crops.
Agricultural loans in India are not only offered to farmers working towards the cultivation of food crops, but they are available to anyone who is engaged in other agriculture-related sectors like horticulture, aquaculture, animal husbandry, silk farming, apiculture and floriculture.
National Bank for Agriculture and Rural Development (NABARD)
Top Agricultural Loan Company List in Odisha-In India, all premier banking and financial organizations, at all levels, offer a great deal of financial help to farmers. However, this trend of boosting the rural economy and agriculture through financial credit was started by the National Bank for Agriculture and Rural Development (NABARD) back in the early 1980s. When it comes to credit in the field of agriculture, all other banks throughout the country fall under the purview of the NABARD.
This financial institution is working in conjunction with the Government of India to boost agriculture sector. It is credited with several innovative schemes that have immensely aided the farmers throughout the country. The most notable scheme launched by the NABARD is the Kisan Credit Card (KCC).
Kisan Credit Card Scheme
Top Agricultural Loan Company List in Odisha-The Kisan Credit Card is a scheme launched by the Indian banks back in 1998, as a way to fulfill the financial necessities of the agricultural sector. This is done by giving monetary support to farmers, which in turn comes with various features and benefits. The quantum of the loan depends on several factors like cost of cultivation, farm maintenance cost, et cetera.
This has been particularly beneficial for those farmers who are not aware of the banking practices. Moreover, it is meant to protect farmers from harsh and informal creditors, which may land them in a massive debt.
Top Agricultural Loan Company List in Odisha-The farmers can use the KCC card to withdraw funds for the purpose of crop production and domestic requirements.
Applying for the Kisan Credit Card is a simple, hassle-free process that requires minimal documentation. It also offers crop insurance coverage, along with subsidies on interest payments. Speaking of interest, farmers applying for loans under the KCC scheme can borrow funds at 7 percent per annum, for amounts up to Rs. 3 lakh.
Top Agricultural Loan Company List in Odisha-The Kisan Credit Card is linked to the farmer’s savings account and all the transactions are done under a single account. Additionally, any credit balance in the KCC account earns interest. All farmers can apply for a KCC and if you are looking to apply for one, then visit your nearest bank for more information.
Other Similar Types of Agricultural Loan Schemes
Top Agricultural Loan Company List in Odisha-The NABARD has also helped greatly in developing a couple of other schemes, targeting specific sectors. A few of them are listed below:
- Dairy Entrepreneurship Development Scheme: This scheme is meant to promote the dairy sector, specifically by setting up modernized dairy farms, promoting calf rearing, provide infrastructure, upgrading logistical operations to improve the product on a commercial scale, and generate self-employment.
- Rural Godowns: The main objective of this scheme is to help farmers throughout the country by providing them with godowns. This will, in turn, improve their holding capacity drastically and as a result, they will be able to sell their produce at fair rates, rather than selling them under distress. In addition to this, with a nationalised warehouse system in place, the marketing of agricultural produce becomes simpler.
- Loan Against Warehouse Receipts: Warehouse receipt financing serves as a foolproof way to prevent distress sales. When a farmer needs funds, post-harvest, all he has to do is store his produce in a Warehousing Development and Regulatory Authority (WDRA) accredited warehouse, which in turn issues him a receipt. This warehouse receipt mentions important details like quality and quantity of the produce, and can be used to get credit from banks, up to 70 percent of the collateral value.
- Solar Schemes: These schemes were implemented in order to reduce dependence on grid power by promoting the use of solar equipment. The idea here is to replace diesel pumps with solar ones, considering that they have low operating costs and are environment-friendly.
Top Agricultural Loan Company List in Odisha-The official website of NABARD can be visited for more details on these schemes, along with the information on how to apply for them. Since many of these are subsidy based schemes, your bank will adjust your loan repayments against the corresponding subsidy you are entitled to, through the funds released by NABARD.
Agriculture Loan Interest Rate for different Banks in Odisha
|Bank||Interest Rate||Processing Fee|
|State Bank of India||7.25% p.a. onwards||0% p.a. to 1.25% p.a. of the loan amount|
|IDBI Bank||7% p.a. onwards||At the discretion of the bank|
|IndusInd Bank||10% p.a. onwards||1.25% of the loan amount + GST|
|Central Bank of India||Up to 13.25% p.a.||At the discretion of the bank|
|Karur Vysya Bank||8.30% p.a. onwards||At the discretion of the bank|
Types of Agriculture Loan
Top Agricultural Loan Company List in Odisha-Given below is the list of types of agriculture loans that you can avail for yourself:
- Crop Loan: These types of loans are also known as Retail Agri Loans is a type of loan which allows a farmer to meet his short-term expenses arising due to cultivation of crops, maintenance of farm equipment, and other post farm activities. The farmer gets a credit card called the Kisan Credit Card on availing this type of loan which they can use to withdraw money to make necessary purchases to meet their farming needs.
- Agricultural Term Loan: These are long term loan schemes which a farmer can avail to meet their non-seasonal expenses. One can avail this loan to buy or upgrade equipment such as windmills, solar power, etc. The repayment tenure for such kind of loan schemes can go up to 4 years allowing the farmer to repay the amount in a convenient manner.
- Solar Pump Set Loan: If a farmer is involved in small irrigation projects and require capital to buy photo voltaic pumping system, then availing a solar pump set loan is the appropriate option. The repayment tenure for such loan schemes go up to 10 years.
- Loan for Allied Agricultural Activities: Farmers involved in allied agricultural activities can apply for such type of loans if they need to raise working capitals to meet their farming expenses.
- Farm Mechanization Loan: If a farmer requires working capital so that they can either purchase new farming machineries or upgrade their existing ones such as purchasing a new tractor or getting an old one repaired, then they can apply for these types of loan schemes.
Top Agricultural Loan Company List in Odisha –Other types of loans
- Agricultural Gold Loan: The applicant can avail this type of loan by pledging their gold ornament as security. The loan amount can be used to meet various farming expenses such as buying machineries or to meet cost related to cultivation of crops. These types of loans are generally offered at a low interest rate and also allows a farmer to use their gold which would otherwise stay idle.
- Forestry Loan: If a person is involved in growing crops which grows on trees, then they can apply for a forestry loan. The loan amount can be used to meet the cost of activities such as converting a barren land into a farming land, setting up irrigation channels, clearing wild trees, etc.
- Horticultural Loan: Farmers involved in setting up vegetable farms and orchards can apply for a horticultural loan which not only allows them to meet the cost of managing such type of farms, but also helps in meeting the expenses related to other horticulture activities such as clearing wild trees, setting up fence, etc.