Farmer Funding – Apply for Loan for Farmers Online

Farming is the backbone of Indian society and the entire country depends on it. Farming requires different inputs like seeds, fertilisers, pesticides, etc. for cultivating and harvesting crops. And to meet such an intense demand for inputs, farmer funding is quite important. To help the farmers meet all these requirements, the Government of India has launched various schemes. 

Agricultural loans can help you purchase land, and agricultural tools like sickles, ploughs, tractors, handpumps, etc., and bear the cost of ploughing, weeding and harvesting the crops. Funding for farmers will help them cover these needs at a lower interest rate. 

In this article, you will come across different farmer funding schemes, their features and benefits, and the right process to apply for farmer funding. 

What are the different farmer funding schemes available in India? 

Several banks provide loans to the farmers at subsidised interest rates. However, the tenure of repayment and the loan amount vary according to your chosen bank. 

• Kisan Power Scheme:

This agricultural loan scheme provides credit to the farmers to cover the cultivation and post-harvesting expenses. The allowed loan amount for Kisan Power Scheme is between the range of INR 25,000 to INR 2,50,00,000. Banks give you 3.5 years of tenure to repay the Kisan Power loan.

• Kisan Matsya scheme:

You should apply for farmer funding schemes focusing on other agricultural activities like fishery and poultry farming. Kisna Matsya scheme is one such scheme that provides credit to the farmers who want to invest and meet the recurrent expenses in fishery farming. You can get up to INR 1.5 crores as a loan amount for 1 year to 5 years. 

• Poultry power scheme:

This farming loan scheme incentivises farmers to finance working capital and cover their term loan requirements in poultry units. The loan amount under this scheme is between INR 2,00,000 to INR 5 Cr, and the maximum repayment tenure is 5 years. 

• Dairy Power Scheme:

This exclusive farmer funding scheme extends credit facilities to animal husbandry. Farmers associated with dairy farming can apply for a farmer funding scheme like this. The loan amount ranges between INR 25,000 to INR 5 lakhs, and the maximum repayment tenure is up to 3 years. 

• PM KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan) scheme:

This is a very good scheme for farmers who want help installing standalone agricultural pumps and solarising grid-connected agricultural pumps. You should apply for a farmer funding scheme like this if you want the tenure of the loan to be about 7 years, including a moratorium period. The loan amount that can be sanctioned to a farmer is between INR 25,000 to INR 2.5 Cr. 

What documents are required to apply for a farmer funding scheme in India? 

You need basic documents to apply for a farmer funding loan online. 

1. The loan application form from your bank should be duly filled with all your details and signed. 

2. You need to show your recent passport-size photographs, and in case you have a co-borrower, you need that as well to apply for farmer funding schemes. 

3. Your identity proof includes your Aadhaar Card, Voter ID Card, PAN Card, Driving license, etc. 

4. Your address proof includes your proof of your residence and proof of your registered office. 

5. Your proof of registration and your GST certificate, if applicable. 

6. For income proof, you need to show your IT Returns for the last three years, the audited balance sheet for the last three years, and the last year’s bank statements. 

7. You have to show your land ownership records, the ROC search report of the company, and the KYC documents of your company to apply for a farmer funding scheme. 

8. You will also be asked for local authority permissions, estimates, detailed business plans, etc. 

What is the eligibility to apply for a farmer funding scheme in India? 

You need minimum eligibility criteria to qualify to apply for a farmer funding loan in India. They are:

1. You should be between the age group of 18 years to 70 years to qualify for the eligibility of farmer funding scheme. 

2. You must pledge some of your necessary assets and use them as collateral to get a loan. 

3. Based on your terms and conditions and age, loans can either be applied on an individual basis or a joint basis. For example, some banks ask for a co-applicant if the borrower is 60 years or above. 

What is the process to apply for a farmer funding scheme online? 

Here are some simple steps to follow to apply for farmer funding online. 

1. Visit the official website of the preferred bank and go to the “farmer loan application” section. 

2. Fill in all your details like your name, contact number, address, PIN code, etc., and submit the photocopies of all the desired documents. 

3. Verify all your documents and information before filling out the security key. Now click on “submit” and wait for a bank official to contact you within a few days. 

Besides this, you can also send an SMS to the toll-free number of your bank and let the bank know that you want to apply for a farmer funding scheme. A bank representative will catch up with you as soon as you do that. 

Summing it up:

Incentives to farmers in the form of loans are a great way to promote agricultural growth and meet production demands. To apply for farmer funding schemes, you need to be well-versed with the eligibility criteria, the documents required, and the type of loan you are interested in. You can use an Agri EMI calculator to calculate different offers and decide the best for you. 

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