A loan for purchasing agricultural land can help you invest in a valuable asset with can be useful for cultivation of crops or other activities. This secured loan is one of many types of land loans issued by all banks and NBFCs. However, there are a few rules and restrictions for getting this credit facility.
It’s important that you do your research and choose the right type of land loan for your needs. Read on to know more about loans for agricultural land purchases.
The eligibility criteria for a loan for agricultural land purchase differs based on your chosen lender. Here are some common requirements:
| Particulars | Description |
|---|---|
| Age | You must be at least 18 years old |
| Type of Land | The land must be used for agricultural purposes and not for any other commercial or residential purpose |
| Income | You must have a regular income, either from farming or any other business or profession |
| Credit Score | You must have a good credit score to get approved for a loan, but some lenders may be willing to work with borrowers with lower credit scores |
Requirements for this loan to buy agricultural land for salaried as well as self-employed applicants are similar, which are as follows:
In addition, lenders may ask for other documents at the time of application for verification. Thus, its best to check the complete list on their website to save time and get quick loan approval.
Here are some common features of an agricultural land purchase loan.
Such loans can range from a few lakhs to several crores.
Agriculture land purchase loan interest rates can be fixed or floating and vary depending on the lender, loan amount and tenure.
It can range from a few months to several years, as per the lender’s policies.
This land is usually considered as collateral for the loan, but lenders also accept crops, livestock, or farm equipment.
You can enjoy flexible monthly or annual instalments, depending on the lender’s policies.
Applying for it is similar to any other type of loan offered by the financial institution. Here are the steps for offline application.
To apply online on the lender’s website, follow these steps:
Know that these are general steps, but the particular process may vary from lender to lender.
Armed with this information, you can now plan your loan for buying agricultural land with ease. Remember, public sector banks often have agricultural land purchase schemes for small or marginal farmers that come with affordable terms. However, check the eligibility criteria carefully, as these may be stringent.
If you need funds for your personal needs, consider applying for a Fibe Instant Personal Loan for up to ₹5 lakhs with affordable interest rates. We offer a comfortable repayment tenure of up to 36 months with the option to foreclose the loan without penalties. Download our Personal Loan App or apply on our website today!
An agricultural land purchase loan is usually a secured loan backed by the land as collateral. A personal loan is usually unsecured.
The interest rate on a loan for agricultural land can vary depending on the lender, loan amount and repayment tenure.
Yes, farmers can get personal loans if they meet the lender’s eligibility criteria and have proper income documentation.
Yes, women are eligible for agriculture loan for purchase of land.
Yes, you can use this loan for any farming related expense, including buying equipment.
For loans up to ₹1.6 lakh, lenders don’t need collateral. For a loan amount above that, you need to pledge collateral at the lender’s discretion.
