For agricultural loan seekers, nothing is better than finding a low-interest rate. After all, not only does this type of deal equate to affordable payment terms, but it also promises fewer risks. With this, many are eager to find a loan with the lowest interest rates.
In India, loan providers are currently engaged in a heated competition to offer the best loan rates to customers. As a result, people often find themselves torn between which programs to apply to. However, knowing the best loan deals can help you.
Here, we have rounded up the best Indian agricultural loans that offer the lowest interest rates. Whether you simply want to cut on your borrowing costs or take advantage of an opportunity to access funds with fewer risks, these deals are the best you can get.
Indian Agricultural Loans with the Lowest Interest Rates
UCO Bank – UCO Kisan Bhoomi Vridhi
If you’re looking for a rewarding loan option with lower interest rates, UCO Bank’s UCO Kisan Bhoomi Vridhi should be on top of your list.
Specifically, under the said program, farmers can claim up to Rs. 10.00 lacs loan amount, with only a 3.10% – 3.50% interest rate.
As part of its terms, the loan amount will depend upon three options: the valuation as assessed by the branch, the benchmark rate fixed by the state, or the registration value – you will receive whichever is the least among all of them.
To make the offer even more accommodating, farmers can enjoy a term of 7 to 10 years to repay the borrowed amount.
To apply, eligible applicants include small and marginal farmers (owning a maximum of 5 acres of non-irrigated land or 2.5 acres of irrigated land, including the purchase of land under the scheme), as well as sharecroppers or tenant farmers.
Central Bank of India – Cent Kisan Tatkal Scheme
Another favourable agricultural loan that you might want to check out is Central Bank of India’s Cent Kisan Tatkal Scheme.
Created specifically for members of the farming community to meet their urgent financial needs, the program comes with a quantum loan of 50% of CKCC limit, or 25% of your annual income (minimum of Rs.1,000/- and maximum Rs.50,000/-).
As part of its unique offers, clients of the program will be subjected to an interest rate that is 8.70% p.a. onwards. On top of that, repayment of the loan can also be made within 5 years in suitable installments that match a person’s overall income generation.
To apply, applicants must be individual farmers or joint borrowers with existing Kisan Credit Cards. To know more, simply visit this link.
Union Bank of India – Land Purchase Loan
Meanwhile, if you’re in need of immediate cash to purchase estates growing traditional plantation crops, Union Bank of India’s Land Purchase Loan may be your best bet.
As the name implies, the program serves as a financing option to allow individuals to acquire their preferred land.
Similar to the previous item, this loan comes with a low-interest rate of 8.70% p.a. onwards. However, while the Central Bank of India’s Cent Kisan Tatkal Scheme promises up to 5 years of repayment, the Land Purchase Loan has a 7 to 9-year repayment period.
To apply, the bank requires that the applicant must have yielding estates and should demonstrate abilities to rejuvenate the estate that is to be purchased.
Aside from that, the individual must also meet the criteria of the respective State Government norms of being an agriculturist or at least satisfy the income criteria stipulated by the State Government.
Total land holding, including the land to be acquired, must also be within the land ceiling norms of respective State
The Bottom Line
Have you found the best agricultural loan that matches your lowest interest rate expectation? While borrowing gives you instant relief from your urgent needs, securing a program that comes with favourable terms is a must.
Want to know more? Feel free to contact any of the banks from these options provided.