Checklist of Documents Required for Agriculture Loan
Agriculture is a key pillar of India’s economy, with millions depending on farming for their livelihood. To assist farmers, financial institutions and banks offer agriculture loans to meet various needs, whether for long-term investments or short-term requirements like crop production. These loans help farmers manage their operations effectively, covering essential costs like seeds, fertilizers, pesticides, irrigation, and equipment. With flexible repayment options and competitive interest rates, agricultural loans support farmers in boosting productivity and achieving financial stability.
In India, banks offer several types of agricultural loans to support farmers. These include Crop Loans / Kisan Credit Cards for short-term farming expenses like seeds and fertilizers, and Agriculture Term Loans for long-term investments in farming. Agriculture Working Capital Loans help cover daily operational costs, while Farm Mechanization Loans assist in purchasing farming equipment and machinery. There are also Horticulture Loans for growing fruits, vegetables, and flowers, as well as Forestry Loans for planting and maintaining forests. Additionally, loans are available for various other farming-related activities to meet the diverse needs of farmers.
Before applying for an agricultural loan, it's important to carefully review the loan plan and read all the Terms & Conditions. Make sure you have all the required documents ready to submit. Some banks and institutions also offer online services, making the process more convenient. Simply visit the lender’s website, enter the necessary details, and upload the required documents. The lender will then review and verify your application. Once the verification is complete, your loan will be approved.
One of the key benefits of an agricultural loan is that it requires fewer documents compared to other types of loans. You only need to provide basic documents like valid identity proof, address proof, and a completed application form. Agricultural loans are usually processed and approved faster than other loan products. Once your application is approved, the loan amount is transferred to you quickly. With competition among banks, you can often find loans with low interest rates, making repayment easier. Some financial institutions offer loans with interest rates as low as 6% per annum. Additionally, lenders provide flexible repayment terms to suit your convenience and ability to repay.
For Salaried Individuals:
- Form 16 – A certificate provided by the employer for income verification.
- Certified Letter from Employer – A letter from the employer confirming employment details.
- Payslips – Payslips for the last 2 months.
- Increment or Promotion Letter – A letter confirming any salary increment or promotion.
- IT Returns – Income Tax Returns for the past 3 years.
- Investment Proofs – Documents proving investments (e.g., fixed deposits, shares).
- Passport-sized Photographs – Recent passport-sized photos.
For Self-Employed Individuals:
- Income Tax Returns (ITR) – ITR documents for the last 3 years.
- Balance Sheet and Profit & Loss Account Statement – Duly attested by a Chartered Accountant (C.A.).
- Business License – Relevant business license or equivalent documents.
- License for Professional Practice – For professionals like doctors, consultants, etc.
- Registration Certificate of Establishment – For shops, factories, or other establishments.
- Proof of Business Address – Document verifying the business location.
Additional Documents Required:
- KYC Documents – Know Your Customer documents for identity verification (e.g., Aadhar card, passport, or voter ID).
- Asset Documents – Documents proving ownership of assets that will act as security for the loan (e.g., property papers, vehicle registration).
- Security PDC (Post-dated Cheques) – Post-dated cheques as security for the loan.
Charges and Fees:
- File Charges: ₹3720.00 (Security amount; ₹3000 will be refunded with the loan amount).
- Documentary Fees: ₹720.00 (Non-refundable).
- Male/Female Candidate Interest Rate :- 6.25 Flat Per Annum
