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What is a Loan Against Agricultural Land?

A mortgage loan against agricultural land is a kind of credit given against land owned by the borrower. Usually, farmers procure this form of a loan. The maximum loan value offered by financial institutions is usually equal to the value of the mortgaged land.

This loan can be used for several purposes such as marriage, medical requirements, cultivation of crops, bearing expenses of cultivating machines, and so on. 

Interest Rate for Loan Against Agricultural Land

Here’s a closer look at interest rates on loan against agricultural land. 

Financial Institution 

Interest Rate

Processing Fee


9.35% onwards

1% of the loan value

Kotak Bank of India

9.50% onwards

1% of the loan value


9.65% onwards

0.25% of the loan value


8.53% onwards

0.75% of the loan value

IndusInd Bank

9.95% onwards

2% of the loan value

Disclaimer: Interest rates are subject to change as per financial institution’s policy

Features of Loan on Agricultural Land

The following are a few features of loan against agricultural property

Specially Designed

This form of loan is specially designed for people who are involved in cultivating crops, including farmers, planters, and horticulturists. 

Flexible Repayment Tenure

This loan comes with a flexible repayment tenure of up to 20 years, allowing you to choose the time period as per your convenience. 

No Hidden Charges

No hidden charges are applicable on a loan against agricultural land. As a result, you will be saved from an extra economic burden. 

Multi-purpose Loan

This financing can be used for dairy units, micro-irrigation, fisheries, food processing, purchase of agricultural machinery, and so on. 

Minimal Documentation:

The loan can be acquired with a minimal documentation process. As a result, your time and effort will be saved.

Eligibility Criteria for Loan Against Agricultural Land

If you are considering applying for a loan against agri land, you must be well-informed about the eligibility criteria. Below are the details about the same.

  • Your age must be between 21 years to 65 years. However, the eligible age varies from lender to lender.

  • These loans are available to farmers, dairy proprietors, horticulturists, and any orchard proprietors.

  • Co-applicant is required if the land is owned by two persons.

Documents Required to Apply for Loan Against Agricultural Land

In order to avoid rejection, you must provide the required documents that are listed below.

  • Identity proof (Aadhaar card, Voter Id card, Driving licence)

  • Address proof (Aadhaar card, Utility bills, Passport, Ration card)

  • PAN card

  • Land documents, including tax slips, utility bills, registration papers, etc.

  • Copy of land sale agreement

  • Bank statement for last six months

  • Passport size photographs

How to Apply for Loan Against Agricultural Land?

You can apply for a loan against agricultural land through online and offline modes. You may also apply for the same by visiting the Bajaj Markets website in order to have a hassle-free experience. 

1. Online Mode

Here are the steps to follow. 

  • Step 1: Choose the financial lender and visit its website.

  • Step 2:Go to the ‘Loans’ section and choose the ‘Loan Against Property’ option.

  • Step 3:Fill in the details in the application form carefully.

  • Step 4:Attach the supporting documents and submit them.

  • Step 5: Once the form and documents are submitted, your request will be processed, and the financial institution will take further steps to complete the procedure.

2. Offline Mode

Visit the nearest branch of the financial institution from which you want to obtain this loan and apply for the same by filling up the application form. 

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Fees and Charges for Loans Against Agricultural Land

Here are the details about different fees and charges for loans against agricultural land. 

  • Foreclosure Fee: This fee is applicable when the borrower pre-closes the loan by paying the outstanding amount before the loan term expires. However, this fee varies from lender to lender as some banks impose foreclosure fees while others do not.

  • Processing Fee: It is a one-time fee that applies during the sanction of a loan. Each bank has its own processing fee. 

  • Penalty for Delayed Payment: It is imposed when the loan EMI is not paid on its repayment date.

  • Bouncing Fee: When a cheque submitted for a loan EMI payment bounces, this fee is imposed.

  • Stamp Tax: It is implemented in accordance with the current state legislation. It is a one-time charge made at the moment the loan is disbursed.

  • Documentation Fee: This charge is applied when the loan is sanctioned.

  • Valuation Fee: It is used if the bank considers the borrower's residential, agricultural, or commercial property.


The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort. 

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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FAQs on Loan Against Agriculture Land

What is the PM Kisan Loan?

The PM Kisan loan is a government-sponsored program that was launched to assist farmers in the areas of agriculture, fishing, and animal husbandry.

Is it mandatory to have a co-applicant for availing Loan Against Agricultural Land?

If two persons own the land, a co-applicant is required while applying for the loan

What are the types of agriculture loans available?

Several types of agriculture loans are available, including Crop Loan, Kisan Credit Card, Tractor Loan, Combine Harvester Loan, Drip Irrigation Loan, and so on.

Can we take a loan on agricultural land?

Yes, you can take a loan against your agricultural land.

Is a CIBIL score required for an agriculture loan?

No, CIBIL score is not mandatory to secure an agriculture loan

Which bank is best for an agriculture loan?

There are several banks available in the market. You can compare their interest rates, processing fees, and other charges in order to find the best option.

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