💰 Loan Features
| Feature | Details |
|---|---|
| 💸 Loan Amount | Typically up to ₹5–10 lakh (can go higher for corporate/agri groups) |
| 📆 Loan Tenure | 7 to 10 years, including a moratorium (grace period) |
| 📉 Interest Rate | Varies from 8% to 12%, lower under government schemes |
| 💼 Margin Money | Usually 10% to 20% contribution from borrower |
| 🔒 Collateral | Usually the land being purchased or existing land owned |
| 🏦 Repayment Mode | Monthly, quarterly, or seasonal EMIs |
🧾 Purpose of Land Purchase Loan
Buy new agricultural land
Purchase adjacent plots to consolidate landholding
Support landless farmers in acquiring farmland
Improve farm productivity and income through land expansion
✅ Eligibility Criteria
| Criteria | Details |
|---|---|
| 👤 Applicant Type | Individual farmers, joint borrowers, farmer groups |
| 🌾 Occupation | Should be engaged in agriculture or allied activities |
| 📜 Land Proof | For expansion – must own agricultural land already |
| 🧾 Documentation | Clear land records and no legal disputes on the land |
Apply Loan
📋 Documents Required
Aadhaar & PAN card
Passport-size photos
Sale agreement or land quotation
Existing land ownership records (if applicable)
Land revenue receipts
Proof of income or farming activity
Bank account statements
No Due Certificate from other banks (if required)
🏦 Major Lenders Offering Land Purchase Loans
| Institution | Special Notes |
|---|---|
| SBI | Land Purchase Loan for farmers – up to ₹10 lakh |
| NABARD | Refinances banks providing long-term land purchase credit |
| HDFC Bank | Agricultural loan schemes including land purchase |
| BOB / PNB / Canara Bank | Government-subsidized land purchase loans |
| Regional Rural Banks | Active in rural/agricultural lending |
🎯 Benefits of Land Purchase Loan
Enables expansion of farming operations
Encourages landless or small farmers to own land
Helps in consolidating fragmented land parcels
Promotes long-term investment in agriculture
Low interest rates under priority sector lending norms
⚠️ Things to Consider
| Concern | Explanation |
|---|---|
| 🛑 Land restrictions | Some states do not allow purchase of agricultural land by non-farmers |
| 🔍 Legal verification | Ensure clean title, no disputes, and proper mutation records |
| 📉 Delayed ROI | Farmland takes time to generate returns unless efficiently managed |
🔁 Example
Sunita, a small farmer in Madhya Pradesh, wants to buy 1 acre of nearby land priced at ₹3 lakh.
She contributes ₹50,000 from savings.
The bank sanctions a Land Purchase Loan of ₹2.5 lakh for 7 years at 9% interest.
She repays after harvest season every year.
With increased land, her crop income grows by 30%.