T17 2020/01/23 07:41:58.251001 GMT+0530
Home / Agriculture / National Schemes for Farmers / Agricultural Credit
  • State: Open for Edit

Agricultural Credit

This topic covers the Information related to Agricultural Credit.

What to Do?

  • To save themselves from the clutches of money lenders, farmers can avail loan facility from banks.
  • Loan facility is available through a large network of Commercial Banks, Regional Rural Banks and Cooperative Credit Institutions in the country to fulfill the crop loan and term loan needs of the farmers.
  • Ensure timely repayment of bank loan.
  • Proper record of loan should be maintained by farmer.
  • Utilize the bank loan for actual purpose for which bank loan is taken.

What Can You Get?

Credit facility to farmers

Credit Facility to Farmers
S.NO Credit Facility Quantum of Assistance
1 Interest Assistance

Collateral / security-free loan
Crop loan upto Rs.3 lakhs at 7% rate of interest. This interest rate becomes 4% due to 3% interest subvention incentives provided to those farmers who repay crop loan on time

No need of collateral security for farm loan up to Rs 1.6 lakh
2 Kisan Credit Card Farmers can avail crop loan through Kisan Credit Card. Loan /credit limit is fixed on the basis of crop sown and area under cultivation. Kisan Credit Cards are valid for 3-5 years. Farmers are also provided risk coverage in the event of accidental death/ disability. Crop coverage loans are covered under the Crop Insurance Scheme.
3 Investment Loan Loan facility to the farmers is available for investment purposes in the areas viz. Irrigation, Agricultural Mechanization, Land Development, Plantation, Horticulture and Post-Harvest Management

Price Policy for Agricultural Commodities

Price Support Scheme (PSS) for Procurement of Oilseeds, Pulses & Cotton under Minimum Support Price (MSP)

Name of the Scheme Objectives Beneficiary Implementing Agency Commodities covered
under Scheme
Likely Benefit to the growers Pattern of Assistance
Price Support
Scheme (PSS)
To provide
prices to the
cereal, copra,
and raw jute.
Pulses & cotton growers in case of price fall below the
Price (MSP)
declared by
of India in
both crop
seasons i.e.
Rabi & Kharif
every year.
All the
pulses &
cane and
raw jute
of the

(i) Central Agencies
NAFED & Small
Farmers Agri-business
Consortium (SFAC).

(ii) State Agencies
State Cooperative
Federations and any
other organization
appointed by the Central Agencies at State Level.

(iii) Primary Agencies –
Cooperative Marketing
Societies, Farmer
Producer Organizations
(FPO), Farmer Producer
Companies (FPC) at
village level

CACP recom-
mends MSPs of 23 commodities,
which comprise
7 cereals (paddy, wheat,  maize,
sorghum, pearl
millet, barley
and ragi), 5
pulses (gram, tur, moong, urad, lentil), 7 Oilseeds
rapeseed-mustard, soyabean,
seasmum, sunflower, safflower,
nigerseed), and
4 commercial
crops (copra,
cotton and raw
Price sup-
port Scheme
(PSS) operations, farmers are assured to get
price in case
the market
price of that
falls below
the MSP
i)Farmers– MSP for the
specific commodity is fully paid to the farmers, in case the prices rule below the
(ii) Central Agencies –
Losses incurred to the
central agencies are fully reimbursed by the Government of India. Besides, service charges @ 2.5%
on the procurement cost for Copra and 1.5% for oilseeds, pulses & cotton
are also paid to the central agencies.
(iii) State /Primary Agencies – The difference
between MSP and Ruling Price along with all expenses up to the storage points are paid to the State agencies by Central agencies/Government of India. Besides, 1% service charge at the ex-godown cost is also paid.

Whom to Contact

  • Joint Secretary (Cooperation), Department of Agriculture & Cooperation, Krishi Bhawan, New Delhi.
  • Regional Offices of NAFED & SFAC located in State Capitals.
  • District Level Offices of Cooperative Marketing/Commodities Federations.
  • Marketing Cooperative Societies at Tehsil Level and FPOs /FPCs at Block Level.

Pradhan Manthri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

  • The Union Cabinet approved new Umbrella Scheme 'Pradhan Mantri Annadata Aay Sanrakshan Abhiyan: PM-AASHA on 12th Sept, 2018.
  • The Scheme is aimed at ensuring remunerative prices to farmers for their produce as announced in the Union Budget for 2018.
  • This step is a major boost to the pro-farmers initiative of the Government.
  • The new Umbrella Scheme is comprised of Price Support Scheme, Price Deficiency Payment Scheme and Pilot of Private Procurement and Stockist Scheme.
  • This step aims at protecting the farmers’ income which is expected to go a long way towards the welfare of farmers.

Source: Department of Agriculture, Cooperation and Farmers Welfare

Post Your Suggestion

(If you have any comments / suggestions on the above content, please post them here)

Enter the word
Back to top