Loan Against Agricultural Land

Loan Against Agricultural Land is a type of mortgage loan offered against a piece of land owned by the farmer/borrower. The maximum loan amount available is generally equivalent to the price of the land mortgaged. This loan can be used by a farmer/borrower for various purposes like:

• To meet the production, investment and consumption needs
• To bear expenses related to cultivation of crops, equipment purchase
• To manage personal needs such as marriage, medical treatment, education, etc.

Note: Loan Against Agricultural Land is provided by only a few of the providers as most of the banks and HFCs only accept residential and commercial properties. The widely-known term used for such a product is Loan Against Property.

Features and Benefits of Loan Against Agricultural Land

Mentioned below are some of the features and benefits of availing a Loan Against Agricultural Land.

• Available to farmers, dairy owners, horticulturists and orchard owners
• No hidden charges
• Flexible tenure
• lower interest rate as compared to a personal loan
• Tax benefits on the interest paid

Loan Against Agricultural Land Interest Rates & Processing Charges

As the availability of Loan Against Agricultural Land is rare, with only a few of the providers, refer to the table below to check the interest rates for Loan Against Property offered by the leading providers.
Note: You can connect with your preferred provider to check availability of Loan Against Agricultural Land.

Bank	Loan Against Property Rate	Processing Fee
Citibank	8.53% onwards	0.75% of the loan amount
SBI	9.35% onwards	1.00% of the loan amount
Kotak Bank	9.50% onwards	1.00% of the loan amount
HDFC	9.65% onwards	0.25% of the loan amount
IndusInd Bank	9.95% onwards	2.00% of the loan amount

Check Also: List of Housing Finance Companies from Top Providers

Loan Against Agricultural Land Eligibility Criteria

Here are some of the pre-requisites to be eligible to apply for a Mortgage Loan Against Agricultural Land.

Eligible Profiles	Progressive, literate and illiterate farmers, dairy owners, horticulturists who are owners, cultivators or tenants with recorded occupancy rights
Age	Minimum: 21years Maximum: 65 years

Over and above this, there are several other factors like an applicant’s income, liabilities, assets owned, etc., which are evaluated by the provider to determine the eligibility of a customer.

Check Also: Loan Against Property Eligibility Calculator 

Loan Against Agricultural Land Documents Required

The table below shows the list of documents required to avail Loan Against Agricultural Land.

• Duly filled application form
• Identity proof
• Residence/Address Proof
• Land documents (registration, taxes paid, utility bills, etc.)
• Copy of the land sale agreement
• Bank statement

Click To Check Detailed Loan Against Property Documents List

How to Apply for Loan Against Agricultural Land

Customers can apply online for Mortgage Loan Against Agricultural Land through Paisabazaar.com by simply following the below-mentioned steps.

• Go to Loan Against Property section at com
• Fill out the required field and agree to the given terms & conditions
• Enter your personal and loan-related details

Now, few eligible loan options will appear. Compare and apply for a home loan that suits your requirements.

Check Also: Loan Against Land or Plot/Land Loan

FAQs

Q1. How will I receive the loan amount?
The farmer/borrower can withdraw the amount in installments as and when required.

Q2. Is it mandatory to have a co-applicant for availing Loan Against Agricultural Land?
A co-applicant for a Loan Against Agricultural Land is generally not required. However, if there are multiple owners of the land, it is mandatory to include them all as co-applicants.

Q3. What are the different additional charges applicable on Loan Against Agricultural Land?
Over and above the processing fee, following additional charges may be applicable on the loan.

• Property Insurance Charges
• Incidental Charges
• Statutory and Regulatory Charges
• Foreclosure Charges
• Prepayment Charges
• Conversion Fees
• Cheque Dishonor Charges
• Late Payment Penalty
• Stamp Duty
• Legal Fees

Q4. How is the maximum loan amount calculated?
Mostly loan providers decide loan amount on the basis of the size of the land mortgaged. The value of this pledged piece of land is the maximum loan amount available to the applicant.