The agricultural sector in India is still the backbone of the economy and on this over half the population of the country is dependent . For supporting farmers In 2025, the Government of India has taken steps through the extension and inauguration of new agri loan schemes that provide easy credit, low-interest rates loans, and flexible repayment terms.
If you are a small farmer, an Agri-entrepreneur, or part of a self-help group (SHG), these Top Agriculture Loan Schemes in India 2025 are there to help you finance your equipment such as buy seeds, or even expand your farm.
In this article we’ll explore the Top Agriculture Loan Schemes in India 2025 introduced by the Indian government
What Are Agricultural Loan Schemes?
Agricultural loan schemes are the special plans providing the financial support by the government to farmers for their various farming-related activities. Such as buying seeds, fertilizers, machinery, livestock, land development, and even the management of the post-harvest.
The purpose here is to give farmers the right access to cost-effective credit in a timely manner so that they can increase productivity and income.
Top Agriculture Loan Schemes in India 2025
1. Kisan Credit Card (KCC) Scheme
Objective: Kisan credit card scheme is to give short-term credit for activities such as crop production, dairy, fisheries, poultry, etc.
New Features for 2025.
- For eligible farmers, the loan limit has been increased to ₹2 lakh without collateral.
- Digital KCC cards that are linked to UPI and Jan Dhan accounts
- Interest subvention of 3% on timely repayment (effective interest ~4%)
- Coverage expanded to tenant farmers and sharecroppers
Eligibility
- All farmers (including small and marginal)
- Self-help groups that conduct agricultural activities
Apply Via: Nearest bank or Common Service Centre(CSE).
2. NABARD Refinance Scheme for Agriculture:
Objectives of the Scheme: To refinance the banks and the co-operatives that lends the farmer for both short-terms and long-term needs.
2025 update highlights
- Provision for organic farming, micro-irrigation, and agri-startups were increased
- Flexible repayment options tied with crop cycles were introduced
- Targeted benefits for women farmers and SC/ST beneficiaries
Eligibility:
- Banks and lending institutions (providing indirect benefit to farmers)
- Farmers applying through co-operative societies or banks
3. Agri Infrastructure Fund (AIF)
Objective: To give medium-to-long-term debt financing for investing in an infrastructure related to post-harvest storage and community farming.
What is new in 2025?
- The scheme has been lengthened to 2030
- For each undertaking, loan of up to ₹2 crore is available at 3% interest rate for subvention
- Credit guarantee Coverage is available for eligible projects
- Emphasis on climate-resilient infrastructure and cold storage
Who can apply?
- FPOs, agri-tech startups, PACS, SHGs, agri-entrepreneurs
Application link: https://agriinfra.dac.gov.in/
4. PM Formalization of Micro Food Processing Enterprises (PM FME)
Objective: To give support to micro food processing units, which are mostly rural agri-based.
Update 2025:
- 35% capital subsidy for loans Up to ₹10 lakh.
- Primary focus on women led enterprises
- Loan can be easily obtained through the partnership with State Nodal Agencies
Qualification:
- Individual micro food processors
- Farmer producer organizations (FPOs), SHGs
5. Dairy Entrepreneurship Development Scheme (DEDS)
Objective: To encourage dairy farming, milk processing units, and cold chain development.
Features:
- Up to ₹50 lakh loan with subsidy of 25–33%
- Great opportunity for youth as well as first time agri entrepreneurs.
Applying process: Through National Bank for Agriculture and Rural Development (NABARD) channels
Common Features of Agri Loan Schemes in 2025
| Feature | Details |
| Interest Rates | Subsidized (typically 4%–7% after subvention) |
| Collateral | Often waived for loans up to ₹1–2 lakh |
| Repayment Tenure | Varies from 1 to 7 years, depending on loan type |
| Subsidy | Interest and capital subsidies for eligible beneficiaries |
| Digital Application | Most schemes support online applications through portals |
How to apply for Government Agri Loans
Step-by-Step Process:
- Find out the most suitable scheme according to your needs (crop loan, machinery, infra, etc.)
- Check eligibility and gather required documents such as: Aadhaar card, land ownership papers, income proof, KYC, etc.
- Apply online or you can visit the nearest bank to fill out the form.
- Submit your application and wait for verification
- Loan disbursement takes place after the approval—some within 7–10 working days
Tips for Farmers Applying in 2025
- Keep your credit score at a good level and repay past loans on time
- Get registered with a Farmer Producer Organization (FPO) for easier access to larger loans
- Utilize government portals like PM Kisan, AgriInfra, and e-NAM to get quicker approvals
- Inquire whether there is an interest subvention scheme and repayment holiday in case of drought or crop loss
Final Thoughts:
The Indian government has introduced the various well structured Agri Loan Schemes in 2025 to make sure that farmers don’t just survive— but could live a financially secure life. There are several schemes from Kisan Credit Card to infrastructure focused schemes helping farmers in every field.
Frequently Asked Questions:
Q1. What is the KCC loan interest rate in 2025?
It may vary from time to time and usually starts from 4% with timely repayments.
Q2. Can tenant farmers apply for these schemes?
Yes, especially under the KCC and SHG-linked models.
Q3 Are agri loans in 2025 collateral free?
Yes up to ₹2 lakh under most schemes.
Q4 Is there any for the agri-startups?
Yes especially under NABARD and Agri Infra Funds.
Q5. How can I apply for agri loans online?
Via government portal or digital banking apps.