🔑 Key Features
| Feature | Description |
|---|---|
| 👤 Eligible Applicants | Farmers (individuals, groups, SHGs, FPOs) |
| 💰 Loan Amount | Varies from ₹50,000 to ₹15 lakh+ depending on project size |
| 📉 Interest Rate | 7% to 12% (lower with subsidies/NABARD support) |
| ⏳ Loan Tenure | Up to 5–7 years |
| 🔒 Collateral | May be required (depends on loan amount and bank policy) |
| 🧾 Subsidy | Available under various state and central schemes |
🌿 Purpose of Irrigation Loans
These loans are used to:
Install borewells, tube wells, or dug wells
Purchase and install drip irrigation or sprinkler systems
Set up water storage tanks
Buy diesel/electric pump sets
Develop canals or irrigation pipelines
Construct check dams or water harvesting structures
✅ Eligibility Criteria
Must be engaged in farming or allied agri-activities
Proof of land ownership or valid lease agreement
Feasibility of irrigation project (may be verified by bank)
Good repayment track record (if applicable)
Apply Loan
📋 Documents Required
Aadhaar card, PAN card
Land ownership proof
Land map with location of water source
Equipment quotation (e.g., pump set, drip system)
Bank passbook / account details
Photographs
Any applicable government subsidy forms
🎯 Benefits of Irrigation Loans
💧 Improved crop yields with reliable water access
🌾 Reduced dependence on rain-fed farming
🚜 Supports modern and water-efficient systems (e.g., drip/sprinkler)
💵 Access to government subsidies (up to 50–70% in some cases)
📈 Boosts income and reduces crop loss risk
🔁 Example
Raju, a farmer in Maharashtra, wants to install a drip irrigation system on his 2-acre farm.
The total cost is ₹1.2 lakh. He gets a loan of ₹90,000 from his rural bank and contributes ₹30,000.
He also applies for a government subsidy of 50%, reducing his overall burden.
His yield improves by 40%, and water use reduces by half.
🔎 Related Subsidy Schemes
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
Sub-Mission on Agricultural Mechanization (SMAM)
State-specific schemes (e.g., Telangana, Maharashtra, Punjab drip subsidy)