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Can I take a separate loan for buying farm land and is it subsidised?

DDevidas Pawar8mo ago · 242 views

I want to buy two more acres next to my field. Do banks give land purchase loans to farmers and is there any concession?

4 Answers

🌾Farmer.in Krishi TeamExpert ✓8mo ago

Some banks offer a farm land purchase loan, often aimed at helping small, marginal and landless or tenant farmers buy a modest piece of agricultural land, but it is a specialised product and not as common as crop loans. The bank finances a percentage of the value of the land being bought, you contribute a margin, the purchased land is mortgaged to the bank as security, and you repay over several years out of farm income, usually after a short gestation period. These are commercial term loans, so there is generally no crop-loan style interest subvention, though particular schemes for weaker sections may carry softer terms or be refinanced by NABARD. Eligibility looks at your repayment capacity, existing landholding and whether the new land is contiguous and cultivable. Availability and terms vary widely by bank. Ask your bank whether they run a land purchase scheme, the loan-to-value, the repayment period and any concession for your category. This is general information, not personal financial advice.

DDevidas Pawar8mo ago

Maine apne khet ke paas do acre kharidne ke liye land purchase loan ka poocha, kuch hi bank dete hain. Land mortgage hoti hai aur byaj zyada, subvention nahi milta. Apni repayment capacity dekh kar hi lena.

NNivrutti Jadhav7mo ago

A point to check is whether the new land is contiguous and cultivable, the bank looked at that closely in my case. Registration and stamp duty added to my cost. Ask your bank if they run a land purchase scheme and any concession for small or weaker section farmers.

SSopan Kale7mo ago

These are commercial term loans repaid over years after a short gestation, so plan your farm income for the repayment. Availability varies a lot by bank. This is general information, confirm the loan to value and terms with your bank, not personal financial advice.

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