Calculate your monthly EMI, total interest, and full amortization schedule for an agriculture loan based on the loan amount, interest rate, and tenure.
Agriculture loan interest rates vary by the scheme (Kisan Credit Card, term loan, etc.), the lender, and any government subsidy you may be eligible for. Enter your sanctioned or applicable rate — check with your bank or lender for current rates.
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This calculator computes the monthly EMI (Equated Monthly Instalment), total interest payable, and total repayment amount for an agriculture or farm loan in India. It also generates a full amortization schedule showing how each EMI is split between principal and interest across the loan tenure. Use it to plan your farm loan repayments before applying with your bank, cooperative, or NBFC, and to compare different loan amounts, interest rates, and tenures to find the most affordable structure for your agricultural finances.
Agriculture loan EMIs are calculated using the standard reducing-balance formula used for all term loans in India. Interest is charged on the outstanding principal balance, so the interest component of each EMI reduces over time as the principal is repaid.
Formula: EMI = [P × R × (1 + R)N] ÷ [(1 + R)N − 1], where P = principal loan amount, R = monthly interest rate (annual rate ÷ 12 ÷ 100), N = total number of monthly instalments (years × 12).
Example: Agriculture loan of ₹5,00,000 at 9.5% per annum (example rate — enter your sanctioned rate) for 5 years: Monthly EMI ≈ ₹10,500.93. Total interest payable ≈ ₹1,30,055.84. Total repayment ≈ ₹6,30,055.84. (Note: this is for illustration only. Agriculture loan rates under government schemes like the Interest Subvention Scheme may be significantly lower.)
Agriculture credit in India is provided by a wide network of institutions including nationalised banks, Regional Rural Banks (RRBs), Primary Agricultural Credit Societies (PACS), cooperative banks, NABARD-refinanced institutions, and some NBFCs. The Reserve Bank of India (RBI) mandates that banks direct a minimum proportion of their credit to the priority sector, which includes agriculture — currently 18% of Adjusted Net Bank Credit (ANBC) for domestic scheduled commercial banks. The most widely used agriculture credit product is the Kisan Credit Card (KCC) scheme, launched in 1998, which provides farmers with a revolving credit limit covering crop production costs, post-harvest expenses, allied activities, and consumption needs. KCC interest rates are supported by an Interest Subvention Scheme — for short-term crop loans up to ₹3 lakh, eligible farmers receive credit at 7% per annum, with an additional 3% subvention for timely repayment, effectively reducing the rate to 4% for prompt repayers. For term loans (land development, irrigation, farm mechanisation, horticulture, allied activities), interest rates typically range from 8.5% to 12% depending on the lender, loan purpose, and loan amount. NABARD provides refinance support to cooperative banks and RRBs, enabling them to offer concessional rates to farmers. The Pradhan Mantri Fasal Bima Yojana (PMFBY) provides crop insurance linked to KCC, protecting farmers against yield losses. Agriculture income in India is exempt from income tax under Section 10(1) of the Income Tax Act 1961, making proper loan and income management particularly important for farm-sector borrowers.
Agriculture loan interest rates in India vary significantly by product, lender, and government scheme. For Kisan Credit Card (KCC) short-term crop loans up to ₹3 lakh, the Interest Subvention Scheme provides credit at 7% per annum, with an additional 3% subvention for prompt repayment (effective rate 4% for timely repayers). For term agriculture loans (land development, equipment, irrigation), rates typically range from 8.5% to 12% per annum at nationalised banks, and may be slightly higher at NBFCs. Regional Rural Banks and cooperative banks may also offer concessional rates with NABARD refinance support. Always check with your bank for the current applicable rate and any subsidy you may be eligible for.
The KCC credit limit is typically set based on the farmer's landholding, crop pattern, and the scale of finance fixed by the State Level Bankers' Committee (SLBC) for the district. For short-term crop loans, the limit covers production costs, post-harvest expenses, and allied activities. For loans up to ₹3 lakh, no collateral security is required. For limits above ₹1.6 lakh (up to ₹3 lakh), crop hypothecation is required. For limits above ₹3 lakh, additional collateral (land or immovable property) is typically required. The KCC limit is valid for 5 years and reviewed annually. Animal husbandry and fisheries KCC are also available.
For KCC and short-term crop loans up to ₹1.6 lakh, no collateral is required beyond the hypothecation of the crop. For loans between ₹1.6 lakh and ₹3 lakh, the crop or assets created from the loan are hypothecated. For loans above ₹3 lakh, banks typically require a mortgage of agricultural land or other immovable property as collateral. Agriculture term loans for land development, irrigation, or farm machinery generally require land as security. Some states have specific crop insurance linkage requirements for collateral-free loans under PMFBY.
Agriculture term loans in India are available for: land development and levelling; construction of irrigation infrastructure (wells, tube wells, farm ponds); purchase of agricultural machinery and equipment (tractors, harvesters, pumps); horticulture plantation (orchards, vineyards, floriculture); allied activities (dairy farming, poultry, fisheries, sericulture, bee-keeping); farm storage and cold chain infrastructure; solar pump sets; and micro-irrigation (drip and sprinkler systems, eligible for PMKSY subsidy). Each loan type has specific guidelines, eligible purposes, and repayment structures — check your bank's agriculture loan product brochure for current terms.
Yes — agricultural income (income derived from land situated in India and used for agricultural purposes) is exempt from income tax under Section 10(1) of the Income Tax Act, 1961. However, this exemption has specific conditions: the land must be used for agricultural purposes, and the income must arise from such land. If agricultural income is above ₹5,000 and the farmer also has non-agricultural income, the agriculture income is considered for determining the slab rate applicable to the non-agricultural income (partial integration method) — though the agricultural income itself remains exempt. Rental income from agricultural land and income from farm buildings appurtenant to agricultural land used for agricultural purposes also qualify.
NABARD (National Bank for Agriculture and Rural Development) is the apex development finance institution for agriculture and rural development in India. It provides refinance to state cooperative banks, regional rural banks (RRBs), and land development banks at concessional rates, which enables these institutions to offer lower-cost credit to farmers. NABARD also oversees the interest subvention scheme, supervises cooperative banks and RRBs, and funds rural infrastructure through RIDF (Rural Infrastructure Development Fund). NABARD does not directly lend to farmers — borrowers should approach their local cooperative bank, RRB, or nationalised bank, which access NABARD refinance to fund their lending.
Disclaimer: The information, rates, and figures on this page are for educational and illustrative purposes only and do not constitute financial advice. Agriculture loan interest rates, government subsidy schemes, and eligibility criteria change frequently. The EMI shown is a mathematical estimate based on the inputs entered and does not reflect any government interest subvention, processing fees, insurance premiums, or other charges. Consult your bank, cooperative, or a qualified financial adviser for advice specific to your agricultural borrowing requirements.