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Agriculture Loan Interest Rates

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HDFC Bank
10 Second Disbursal*100% Digital Process*Quick Disbursal
Max Loan Amt.Upto 25L
Rate of Interest9.99% - 12.5%
Tenure upto1-5 Years
Processing Fee6,500
ICICI Bank
100% Digital Process*Quick Disbursal
Max Loan Amt.Upto 25L
Rate of Interest11% - 13%
Tenure upto1-5 Years
Processing FeeUpto 2%
Axis Bank
Low Processing fee
Max Loan Amt.Upto 25L
Rate of Interest9.99% - 17.15%
Tenure uptoUpto 6 Years
Processing FeeUpto 2%
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Agriculture Loan Interest Rates

Agricultural loans are offered to farmers, joint cultivators, sharecroppers, tenant farmers, self-help groups and other persons engaged in agriculture. These loans can be either secured or unsecured and are offered by leading banks as well as government institutions. An agricultural loan can be used for various purposes such as meeting expenses related to cropping, upgrading/ purchase of farm machinery, construction of irrigation channels, and other allied agricultural activities. In the following sections, details regarding the interest rates charged on different types of agricultural loans by the major lenders of India, factors affecting agricultural loan interest rates, etc. are discussed.

Current Agricultural Loan Interest Rates

Banks/NBFCs Interest Rates(p.a.)
Bajaj Finance 10% - 31% p.a.
Axis Bank 9.99% onwards
IndusInd Bank 10.49% onwards
IDFC FIRST Bank 10.99% onwards
HDFC Bank 9.99% onwards
ICICI Bank 10.60% onwards
Kotak Mahindra Bank 10.99% onwards
Tata Capital 11.99% onwards
Federal Bank 12.00% onwards
DMI Finance Up to 24%
L&T Finance 11.00% onwards
Kreditbee 12.00% - 28.25%
MoneyTap 13.00% onwards
Piramal Finance 11.99% onwards
Aditya Birla 10.99% onwards
Moneyview 14%-36%
Cashe 33.50% onwards

Also Know: Which bank offers low interest on personal loan?

Processing Fee on Agricultural Loans

The following are the processing fees applicable to agricultural loans from major banks in India:

Name of the Lender Processing Fee
Central Bank of India Nil on loan amount up to Rs. 25,000.Rs. 120 per lakh, subject to a maximum of Rs. 20,000.
Indusind Bank 1.25% of the sanctioned amount.
Axis Bank Up to 0.75% of loan amount.
ICICI Bank Up to 2% of the loan amount.

Factors Affecting Interest Rates

Following are some of the major factors that affect interest rate on agricultural loan:

  • Credit Score: It is one of the first things that banks check before approving a loan application. Credit score is a 3 digit numerical summary of your credit report which is prepared on the basis of your repayment history.
  • Fixed Obligation to Income Ratio: It refers to the part of your income formed by ongoing loan EMIs, credit card dues and other such obligations.
  • Credit Utilization Ratio: It refers to the amount of credit used by you out of the total credit available to you. The higher your credit utilization, the more debt you are carrying and the riskier you will be perceived as a borrower by potential lenders.
  • Number of Loan Applications: This corresponds to the number of lenders to whom you have submitted your loan application.
  • Previous Relationship with the Lender: This applies when you have previously taken a loan such as a personal loan or home loan from the lender, or if you have a savings bank account or other form of deposit with the lender.

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How to Get an Agricultural Loan at a Low Interest Rate?

Follow the tips mentioned below to get an agricultural loan at the best possible interest rate.

  • Maintain a high credit score, as a high score builds lender’s trust in you.
  • Keep your fixed obligation to income ratio at a low, as it indicates greater repayment ability.
  • Maintain a low credit utilization ratio, preferably below 30%.
  • Avoid multiple loan applications at the same time. Doing so can portray you as credit hungry and bring down your credit score.

How Can I Apply for a Personal Loan Online?

Get up to 40 Lakh in 5 Simple Steps

Step 1: Enter your mobile number in the application form

Step 2: Provide your personal details

Step 3: Enter OTP to verify your mobile number

Step 4: Select the loan purpose and loan amount

Step 5: Compare offers and apply for the best-suited loan

Apply Now

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I want to express my gratitude for your exceptional support & guidance throughout my loan application process to Aman (EW17239). Your professionalism & clear communication made the journey smooth and manageable. I appreciate how you helped during loan approval & fast-tracked the documentation. It is rare to find someone so committed to their clients. I truly value the effort you put into ensuring a successful outcome. Thanks again for your invaluable help.

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I’d like to express my sincere appreciation for Mr. Aman Kumar (EW32023) for the excellent assistance provided. His professionalism & willingness to help made the experience smooth & pleasant. Aman Kumar demonstrated patience & clarity while addressing queries and ensured that everything was handled efficiently. Such dedication & customer-focused service truly deserve recognition. Please convey my thanks and appreciation to him for his outstanding support.

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I really wants to appreciate Mohankumar Dhandapani for closing my loan requirement in such a short time and nice manner. He is very much approachable helped me based on my requirements. He explained me all the options in very short time even one option failed immediately helped me to get other options worked. Excellent job done by Mohankumar Dhandapani all the best keep you same way approachable you will get more customers. Thanks to Paisabazar too.

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I’d like to appreciate the Paisabazar team for the excellent loan service. I especially want to recognize one of your agents, Mr. Prince Kumar, for his outstanding support. For more than a month, he continuously followed up with me and assisted me. His commitment & professionalism made the experience smooth & hassle-free. I appreciate his efforts and dedication. Kindly acknowledge his performance and consider rewarding such a sincere employee.

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My Trust in Paisabazaar has Increased

I would like to take a moment to share my sincere feedback regarding the support I received from your team. The executive who assisted me was extremely professional, polite, and knowledgeable. They patiently understood my concern, explained the process clearly, and guided me step by step toward the right solution. I truly appreciate the transparency, timely responses, and genuine effort shown to help me.

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I contacted customer care with a few queries, and I am very satisfied with the support I received. The representative was polite, patient, and explained everything clearly. My questions were resolved properly, and the overall experience was smooth and helpful. Thank you for the excellent customer service

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Easy loan approval with good guidance

Thank you for the support provided for getting personal loan approval. During this process I worked with Mr. Aman Bajpai (EW17239) who was co-ordinator for this entire process of Personal loan, I was incredibly impressed by his efficiency and problem-solving skills. He went out of their way to ensure all my questions were answered and that the disbursement timeline stayed on track. His coordination was really appreciable.

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Muhje higher education ke liye loan chahiye tha. Paisabazaar pe apply kiya. Got it at the right time. Quite helpful.

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Sabse jada helpful log the yaha

Maine bht jagah try kiya tha personal loan ka, yaha try kiya toh helpful log mille. Har steps mai aram se samjhaya or usse muhje loan lene mai jda dikkat nhi aayi.

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