Introduction to Dropping Agricultural Loan Rates

In 2025, agricultural loan rates have dropped significantly, making financing more accessible for farmers. Loanpao partners with banks and NBFCs to offer low-interest loans under government schemes like KCC and PM-KISAN, supporting farmers with funds for seeds, equipment, and irrigation.

Why Agricultural Loan Rates Are Dropping

Several factors contribute to the decline in agri loan rates:

  • Government Policies: Enhanced interest subvention under KCC and PM-KISAN.
  • RBI Initiatives: Repo rate cuts to boost rural credit.
  • Competition: Banks and NBFCs offering competitive rates as low as 4% p.a.
  • Digital Lending: Fintech platforms reducing operational costs.
  • Economic Support: Focus on agricultural growth in 2025 budget.

Key Agricultural Loan Schemes with Low Rates

Loanpao facilitates loans under these schemes with reduced rates:

Scheme Interest Rate Details
Kisan Credit Card (KCC) 4% p.a. Up to ₹3 lakh with interest subvention
PM-KISAN Linked Loans 5–7% p.a. Financial aid integration for farmers
Sub-Mission on Agricultural Mechanization 6–8% p.a. Up to 50% subsidy on machinery
National Mission for Sustainable Agriculture 5–7% p.a. Loans for eco-friendly practices
State-Specific Crop Loans 4–6% p.a. Short-term loans with waivers

Note: Rates and benefits vary by lender and state.

Eligibility Criteria for Low-Rate Agri Loans

To avail low-rate loans through Loanpao, farmers must meet:

  • Age: 18–70 years.
  • Land Ownership: Owned or leased agricultural land.
  • KYC: Valid Aadhaar, Voter ID, or PAN Card.
  • Bank Account: Linked to PM-KISAN or KCC schemes.
  • Credit History: Score of 650+ preferred; no major defaults.

Tip: Enroll in KCC or PM-KISAN for better rate eligibility.

Documents Required

Loanpao requires these documents for loan applications:

  • Identity Proof: Aadhaar Card, PAN Card, or Voter ID.
  • Address Proof: Utility Bill or Ration Card.
  • Land Documents: Ownership deed or lease agreement.
  • Bank Details: Passbook or statement (6 months).
  • Scheme Enrollment: KCC card or PM-KISAN registration proof.

Types of Low-Rate Agricultural Loans

Loanpao offers various subsidized loan types:

  • Crop Loans: Short-term financing for seeds and fertilizers.
  • Equipment Loans: Low-rate loans for tractors and tools.
  • Irrigation Loans: Funds for drip or sprinkler systems.
  • Term Loans: Long-term financing for land development.
  • Allied Activity Loans: For dairy, poultry, or fisheries.

Benefits of Loanpao’s Low-Rate Agri Loans

Choosing Loanpao offers:

  • Interest rates as low as 4% p.a. with subsidies.
  • Quick disbursal within 7–15 days.
  • Flexible repayment aligned with crop cycles.
  • Access to schemes like KCC and PM-KISAN.
  • Expert support for documentation and subsidy claims.

Frequently Asked Questions

Rates have dropped due to RBI rate cuts, government subventions, and competitive lending.

KCC loans offer rates as low as 4% p.a. with interest subvention.

Farmers aged 18–70 with owned or leased land and valid KYC are eligible.

No collateral is needed for KCC or crop loans up to ₹1.6 lakh.

KCC offers up to ₹3 lakh; other schemes vary based on project needs.

Loanpao disburses loans within 7–15 days post-verification.

Loanpao assists with PM-KISAN registration and loan linkage.

Loan waivers depend on state-specific schemes and distress conditions.

Aadhaar, land documents, bank details, and KYC are required.

Contact Loanpao via the website or call the support number on the contact page.