An agricultural loan is a financial product specifically designed to meet the needs of farmers and agricultural workers. These loans help fund various agricultural activities, such as purchasing equipment, seeds, fertilizers, irrigation systems, or land development. Here's an overview of its features, benefits, eligibility criteria, and documents required.

Features of Agricultural Loans
Purpose-Specific Loans: Available for various agricultural activities, including crop cultivation, land improvement, irrigation, farm equipment purchase, and animal husbandry.
Loan Amount: Ranges from small amounts (₹10,000) to larger sums based on the farmer’s requirement and repayment capacity.
Interest Rates: Subsidized interest rates for farmers, often starting from 4%-10%, with government support for priority sectors.
Repayment Tenure: Flexible tenure ranging from 6 months to 15 years, depending on the loan purpose.
Seasonal Repayment Options: Repayments aligned with the harvesting season to match cash flows.
No Collateral (Small Loans): Loans under ₹1.6 lakhs are often unsecured, while larger loans may require collateral.
Kisan Credit Card (KCC): Provides a revolving credit facility for farmers to meet short-term needs.
Subsidies and Rebates: Many agricultural loans come with interest subsidies and rebates for timely repayment.
Quick Disbursal: Designed to provide funds promptly to meet seasonal needs.
Flexible Loan Types: Includes crop loans, horticulture loans, equipment loans, and animal husbandry loans.

Benefits of Agricultural Loans
Financial Assistance: Helps farmers meet immediate and long-term farming requirements.
Affordable Credit: Subsidized interest rates make borrowing more economical for farmers.
Improves Productivity: Enables farmers to invest in quality seeds, fertilizers, and modern equipment for higher yields.
Customizable Repayment Options: Aligns with crop cycles to reduce financial strain on farmers.
Encourages Modernization: Promotes the use of advanced technology and equipment in farming.
Access to Government Schemes: Many loans come with benefits under government initiatives like PM-Kisan, NABARD, and others.
Boosts Rural Development: Supports the agricultural sector, leading to overall economic development in rural areas.
Loan Insurance: Many loans offer insurance against crop failure due to natural calamities.
Supports Diversification: Encourages activities like poultry, fisheries, and horticulture, reducing dependence on crop farming alone.
Improves Livelihood: Enhances income potential and overall living standards for farmers and their families.

Eligibility Criteria for Agricultural Loans
The criteria vary by lender and loan type but generally include:
Occupation:
Farmers, tenant farmers, sharecroppers, self-help groups (SHGs), and agricultural laborers.
Age: Applicant should typically be between 18 and 70 years.
Land Ownership:
Proof of ownership or lease agreement for agricultural land.
Tenant farmers or sharecroppers may require additional approvals.
Purpose of Loan: The loan must be used for agricultural activities, supported by a valid purpose declaration.
Credit History: A good credit history or repayment record is preferred, though leniency may be offered under government schemes.
Income Proof: Applicants must demonstrate their repayment capacity based on income from farming or allied activities.
Documents Required for Agricultural Loans
Identity Proof: Aadhaar Card, Voter ID, PAN Card, Passport, or Driving License.
Address Proof: Utility Bills, Aadhaar Card, or Ration Card.
Land Ownership Proof:
Land title deed, lease agreement, or revenue records.
7/12 extract or land pattadar passbook (region-specific).
Purpose Proof:
Crop cultivation: Details of crops to be grown.
Equipment purchase: Proforma invoice or quotation.
Allied activities: Project report for poultry, dairy, or fisheries.
Income Proof:
Last 6 months’ bank statements.
Agricultural income details or market receipts for crops sold.
Photographs: Passport-sized photos of the applicant and co-applicants (if applicable).
Loan Application Form: Duly filled and signed application form.
Guarantor (if required): Guarantor’s identity and income proof, depending on loan type and amount.