Farming Loan: Farming is done on a large scale in India. Farmers have to spend a lot of money on everything from crop preparation to seeds, fertilizers, irrigation and labor etc. If there is excessive rain or if the crop gets spoiled due to some reason, then the farmers have to spend money from their own pockets and bear the entire loss. Many times the farmer faces the need of money even before the crop is ready. In such a situation, agricultural loan from the bank can prove to be very helpful.
But small farmers often have this question in their mind that if they have only 1 bigha of land, can they get a loan for farming from the bank and if so, then what will be the amount? Let us know how much loan can be given on one bigha farm.
How much loan can one get on one bigha farm?
According to experts, the amount of loan available on one bigha farm or land depends entirely on the location of the land as well as the fertility of its soil and the crops grown in it. Not only this, it also depends on the rules of the bank. There are many banks in the country which provide agricultural loan facilities to farmers. For this, there is also a special facility of Kisan Credit Card Scheme by the Central Government.
Usually, the total value of the land is first assessed by the bank, after which the value of its loan is calculated. Generally, a minimum of 50 and maximum of 75 percent loan can be availed on one bigha farm. If you have one bigha of land and its value is Rs 20 lakh, then you will get a loan of at least Rs 10 lakh.
From which banks will you get affordable loan?
You can take agricultural loan from any government or private bank. If you take a loan for your farming from State Bank of India (SBI), then you will get the loan at an interest rate of 7 percent. However, in this you will get a maximum loan of only Rs 1.60 lakh without guarantee.
Whereas, if you take a loan from HDFC Bank, then the loan will be available at an interest rate ranging from 8.5% to 11%. In this you will get loan amount up to 65 percent of the land. On taking loan from Bank of Baroda (BoB), the loan will be available at interest rate ranging from 7% to 8.5%. In this, you will be given loan on the basis of the value of the land.
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