Farmer Loan: Apply for Farm Equipment Loans upto ₹50 Lakhs| L&T Finance

A farmer loan is a financial solution to help farmers meet their agricultural expenses. It provides the necessary funds to buy seeds, fertilisers, equipment, and other farming essentials. With flexible repayment options and lower interest rates, these loans ensure farmers can manage their cash flow effectively without disrupting their farming operations. The farmer loan interest rate depends on the loan amount, repayment tenure, and the borrower's financial profile. Many financial institutions offer government-backed agriculture loan for farmers, ensuring better accessibility for small and large-scale farmers alike. These loans can also be used to purchase farm machinery loans and invest in infrastructure improvements like irrigation systems. For those looking for a quick and hassle-free process, an online farmer loan application makes it easy to access funds without visiting a bank.

New Tractor Loan
New Tractor + Implements Combo
New Tractor + Harvester Combo

Features & Benefits of Farmer Loan

Discover the key features and benefits of our Farmer Loan, designed to offer flexible amounts, low interest rates, government subsidies, and quick, hassle-free access for your agricultural needs.

Flexible Loan Amounts

From ₹10,000 up to ₹50 lakh based on your eligibility and needs

Competitive Interest Rates

From 7% to 14% per annum as per the RBI 2025 NBFC guidelines

Government Subsidies

Interest subsidies and subventions available under eligible government schemes

Multipurpose Loan Usage

Covers farm equipment, irrigation, warehouses, seeds, fertilizers, and more

Collateral-Free Options

No collateral required for eligible small farmers

Seasonal Repayment

Repayment aligned with harvest and income cycles

Rapid Disbursal

Loan disbursed within a few business days after approval

Easy Online Application

End-to-end digital process with simple and transparent documentation

Farmer Loan EMI Calculator

Use the Farmer Loan EMI Calculator to quickly estimate your monthly repayments and plan your finances with ease.

Farmer Loan EMI Calculator

Results generated by the calculator(s) are indicative in nature.

Preferred loan amount

₹

Flat rate

Loan tenure (months)

Estimated EMI

per month

₹ 36,690
Interest payable
₹52,41, 690

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How to Apply for a Farmer Loan?

Follow these steps to apply for a farmer's loan in India:

Step 1:
Check eligibility criteria on the lender’s website.
Step 2:
Gather required documents, including identity proof, land records, and income proof.
Step 3:
Fill out the farmer loan application form online or offline.
Step 4:
Submit the application and await verification.
Step 5:
Once approved, the loan amount is disbursed into your bank account.

Our customer support and loan officers guide you at every step to make your borrowing experience hassle-free.

Farmer Loan Eligibility & Required Documents

Eligibility Criteria for Farmer Loan

To apply for a farmer loan, the primary eligibility benchmarks typically include:

Age Requirement:: Applicant must be between 18 to 65 years

Farming Experience:: Minimum of 2 years of active farming (as required by some lenders)

Land Ownership:: Must own or lease agricultural land

Credit Score:: A good credit history helps secure better loan terms

Income Stability:: Must show stable income from agricultural or allied activities

Loan Purpose:: Should be used for farming-related needs like equipment, seeds, or land improvements

You can also use a farmer loan eligibility calculator to quickly check your eligibility and understand your chances of approval before applying.

Documents Required for Farmer Loan Application

To ensure a smooth application and sanction process, keep these required documents for the farmer loan handy:

Identity Proof:: Aadhaar Card / Voter ID / PAN Card / Passport

Address Proof:: Utility Bill / Ration Card / Land Ownership Certificate

Land Documents:: Proof of land ownership or lease agreement

Income Proof:: Bank statements / Sales receipts / Tax returns

Photographs:: Recent passport-sized photographs of the applicant

Loan Application Form:: Duly filled application form with accurate details

Fees & Charges For Farmer Loan

Explore all fees and charges for loans to farmers, including processing, prepayment, and late payment costs, for full transparency before you apply.

Processing Fee – New Tractor & Implement
Up to 1% of the loan amount or ₹30,000, whichever is lower + applicable taxes
Processing Fee – Kisan Suvidha
Up to 2% of additional loan amount or ₹10,000, whichever is lower + applicable taxes
Processing Fee – Used/Preowned Tractor & Refinance
Up to 2% of loan amount or ₹10,000, whichever is lower + applicable taxes
Processing Fee – Trade Advance
Up to 2% of sanctioned amount + applicable taxes
Prepayment / Foreclosure Charges
Up to 2% of principal outstanding + applicable taxes
Asset Valuation & Verification Fee
Up to ₹1,200 + applicable taxes
Penal Charge/Late Payment Charge (LPC):
Up to 2% per month (p.m.) on overdue EMI + applicable taxes
Trade advance – Up to 2% per month (p.m.) on overdue amount + applicable taxes
EMI Dishonour/Bounce Charge*
Based on loan amount: < 5 Lacs – ₹500, 5–50 Lacs – ₹1,000, 50 Lacs–2 Cr – ₹1,500, >2 Cr – ₹2,000
RC Non-submission Charges
Up to ₹1,000 per month post 120 days + applicable taxes
Document Retrieval / Duplicate NOC Charges
Duplicate NOC: Up to ₹1,000 + applicable taxes (charge applicable after 3 free copies)
Repayment Instrument Swap Fee
Up to ₹500 per swap + applicable taxes (branch walk-ins only)
Part-Prepayment Charges
Up to 2% of the part prepayment amount + applicable taxes
Field Collection Service Charges
Up to ₹500 per collection + applicable taxes
Legal Fees and Charges
As per actuals or up to ₹30,000, whichever is lower + applicable taxes
Recovery Charges

Seamless Loans, Simplified Experience

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FAQs & Support

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Maximising Your Farmer Loan Approval: Dos and Don'ts

List of all Dos and Don’ts

Farmer Loan

Having a good track record, LTF provided me with a pre-approved loan which was a huge help to my business. The FLS assisted me personally; he answered all queries. My loan was disbursed within 24 hours. I will recommend LTF to my friends & family and will prefer L&T Finance for future loan requirements.

Akshay Kumar Jha

Location here

Farmer Loan

Sanjay

Location here

Farmer Loan

My friend recommended LTF since they provide tractor loans at a lower interest rate than others, the loan process is simple, no physical documentation is required, payment was deposited the same day and I received the tractor within a week. My agricultural business has really improved thanks to the LTF.

Narayana G

Telangana

Farmer Loan

L&T Finance has supported me as a farmer since 2014, helping me finance two tractors and essential equipment. With flexible, crop-based repayments and easy EMI tracking on the PLANET App, my life has been easy. L&T Finance truly empowers us to grow better and manage finances seamlessly.

Satish Hisar

Beri, Haryana

Farmer Loan

As a third-generation farmer, owning a tractor with L&T Finance's support has transformed our work. The fully digital process made it easy, with swift disbursement and flexible repayment options like EMI Protect. Now, our costs are lower, and farming is efficient. Truly, L&T Finance supports farmer prosperity.

Hardeep Soora

Hisar, Haryana

Farmer Loan

When I decided to buy a tractor, I spoke to the L&T Finance official. After all the documentation, I got approval of my loan with 2-3 days. I didn’t have to go anywhere and yet my loan got sanctioned.

Bherulal Chaudhary

Ratlam, MP

Farmer Loan

The L&T Finance officer came home and did all the application formalities online and instantly got approval for the loan. Our EMI is in accordance with our harvesting cycle. They gave us the best interest rate and fulfilled our financing requirements.

Mr. Balu Hari Pawar

Maharashtra