Agriculture is the main sector of India, as a major section of India is involved directly or indirectly in the agricultural sector. But, the sector is mainly dependent on the climate and the year there is scarcity of rains, the produce is lower and that affects the agriculturists and farmers. They end up facing a lot of financial difficulties. Axis bank has announced certain schemes to help the farmers and agriculturists with their financial requirements.
The agriculture business loans offered by Axis bank are as follows:
Axis Bank under its Farmer Funding section provides different types of loans to different types of farmers. Regardless of whether you are in cultivating crops, poultry farming, or fish cultivation, there is a loan for you which you can avail from the lender.
Kisan power aims mainly at providing adequate and timely credit to farmers to meet cultivation needs that include purchasing inputs, agricultural equipment, developing land, buying bullock carts, two/three or four wheelers, repair farm machinery or any other farming related requirements. Bank also provides finance to meet expenditure on account of any sickness, child’s education and for family functions as well. The farmer can choose between cash credit and term loans and with flexible repayment terms. You can avail a loan for both crops and horticulture practices.
You can avail this loan if you are in the backwater fish or prawn cultivation. You can avail a loan of up to Rs.150 lakh with repayment tenure ranging between 1 year and 5 years.
You can avail this loan from Axis Bank if you own a poultry farm and need capital to improve your existing business.
Agriculture Traders can apply for various loans provided by the bank as per their needs. If you meet the eligibility criteria, you can avail a loan of up to Rs.10 lakh with interest rate chargeable up to 18%.
Agro Power facility is a part of a rural banking initiative by Axis Bank. This particular facility can be fund based or non-fund based. The facilities for fund-based loans include cash credit, working capital loans, term loans, while facilities for non-fund-based loans include guarantee letter by bank and letter of credit. You can avail this loan with a ceiling rate of 18% p.a.
Some of the features of this product is radius of operation up to 75 kms from the rural lending designated branch, simplified assessments, competitive interest rate, and wide range of other facilities. Kisan Mita is a part of the bank’s rural banking initiative which also provide facilities such as ash credit, working capital loans, term loans, guarantee letter by bank and letter of credit. The interest rate offered is up to 18% p.a. and a processing fee of 0.75%.
Another facility under loans for Agri traders and processers where you can avail a loan ranging between Rs.10 lakh and Rs.1 crore and interest rate of up to 18% p.a.
This type of loans allows Micro, Small and Medium enterprises to meet both their short-term and long-term capital requirements. Based on the size of your business and other requirements, you can avail loans ranging between Rs.10.01 lakh and Rs.5 crore.
This scheme aims at financing pledged stocks of agricultural commodities stored at go downs and warehouses that are managed by CWC/SWC/private warehouses that are supervised by managers of Axis Bank Ltd. The intention of this scheme is to avoid distress sales at the harvest time and also to neutralise the seasonality factor. This schem
Axis bank offers hassle free tractor loans to the farmers. They offer no foreclosure charge and you can choose from the flexible repayment option. The farmer with multiple sources of income will get special interest rate.
Axis bank offers easy loan against your gold ornaments. This loan is offered to individuals engaged in agricultural activities. You get the higher limits per gram, attractive interest and convenient repayment schedule. The documentation is simple and the loan is disbursed quickly. You can avail a loan with loan amount ranging between Rs.25,0001 and Rs.2 lakh.
Microfinance business can be divided into two parts. Wholesale and Retail. Under wholesale, the bank will offer credit facilities to MFIs for facilitate further lending to the customers. Under retail, the bank will offer a host of products to individuals, SHGs, and JLGs so that they can meet their various business requirements.
You can get loans of up to Rs.2.5 crore under Kisan Power scheme and up to Rs.1.5 crore under Kisan Matsya scheme. However, the final loan sanctioned is entirely at the bank’s discretion and depends on several parameters/factors.
Although, these three schemes fall under farmer funding there are still differences between these products based on the purpose they serve. Kisan Power is mainly for farmers looking for crop or horticulture loans to sustain their business for the long run. Kisan Matsya is for farmers who are in the business of fresh or brackish water fish or prawn cultivation. And Poultry Power is for those who are into poultry farming.
There are primarily 3 types of Axis Bank Agri & Rural Loans – AGPRO Power, Kisan Mitra and Swift OD. The interest rate can go up to 18% p.a. Also, note that these are secured loans and require collateral or guarantor.
Axis Bank offers Warehouse Receipt Loans – a unique credit line facility, that finances pledged stocks of agro commodities. This credit facility is designed specifically to avoid distress in terms of during the times of harvest. Your pledged commodities will remain under safe supervision of Axis Bank collateral managers.
The Login fee is usually Rs.5,000 and processing fee is 0.75% of the loan amount plus applicable taxes.
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