Agriculture and Farmers Welfare

Scheme for Financing Farmers for Purchase of Land by Small and Marginal Farmers

The scheme aims at providing term loan to small marginal farmers including share croppers /tenant cultivators to purchase agricultural land as well as fallow and wasteland production and  to develop and cultivate it with a view to increase production/ productivity and also enables them to diverse the present activities and take up allied activities. The agricultural policy of the Government of India envisages substantial credit flow to increase agricultural production and productivity. Banks provide term finance to farmers for development purposes and short term loans for production purposes.  There is also a need to finance farmers for purchasing land to expand activities and make existing small and marginal units economically viable. This will help farmers to diversify their present activities and take up allied activities. The advantages come under the scheme is to provide Small & Marginal Farmers. The objectives of this scheme are to make the small and marginal holdings farmers economically viable. it help to bring fallow lands and waste lands under cultivation, To step up agricultural production and productivity and also help to finance the share croppers / tenant farmers to purchase land to enable them to increase income. The purpose develops and cultivates agricultural and fallow/waste lands.  Banks may also consider financing purchase of land to enable the farmers to diversify into other allied activities.  Complete details of the project proposal of the farmer should be obtained by the bank while considering finance for purchase of land

Benefits of Financing Purchase Of Land For Agricultural Purposes:

  • No margin is prescribed for loans up to 50000
  • Reduction in margin will enable small and marginal farmers to avail higher quantum of loan

Objectives of Financing Purchase of Land for Agricultural Purposes:

  1. To make the small and marginal holdings economically viable
  2. To bring fallow lands and waste lands under cultivation
  3. To step up agricultural production and productivity
  4. To finance the share croppers / tenant farmers to purchase land to enable them to increase

Eligibility Criteria of Financing Purchase of Land for Agricultural Purposes:

  1. Small and Marginal Farmers Who owns maximum of 5 acre of non irrigated land or 2.5 acres of irrigated land including land to be purchased
  2. Share Croppers/tenant farmers cultivating up to 2.5 acres of irrigated land or 5 acres of unirrigated land
  3. Entrepreneurs with agricultural background are also eligible Provided state laws Permits Purchase Of Agri Lands By Non Agriculturists

Documents Required for Financing Purchase of Land for Agricultural Purposes:

  1. Copies of land records regarding land owned and to be purchased, certified by the concerned Revenue authorities
  2. No due certificate from Co-operative Credit Society / Commodity Boards Financial Institutions. This can be waived provided sanctioning authority is satisfied that the applicant does not have Liability with society / financial institutions for loans up to Rs. 1 lac
  3. Documents of title and other relevant documents to establish the right over presently held landed property as well as lands to be purchased is to be produced
  4. Copy of sale agreement if entered into or offer letter by the vendor
  5. Simplified application for loans up to -Rs. 3 lakhs
  6. The applications /documentation as applicable to agriculture Term loans as per respective Bank’s guidelines

How to Apply:

  1. You may contact your nearest branch of a bank
  2. You may even talk to the marketing officers visiting your village

Contact Details and References:

For more details of Financing Purchase of Land for Agricultural Purposes please visit following link:

  1. https://www.nabard.org/english/land_pur.aspx
  2. http://www.unionbankofindia.co.in/RABD_Long_Land%20Purchase.aspx
  3. http://www.bankofmaharashtra.in/credit_fac_agri.asp
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