Advances to Agriculture SSIs & Others

Agricultural Advances

Direct loans to Agriculture and allied activities include loans to individual farmers or SHGs / JLGs of Farmers for the following purposes:

  • Short term loans for raising crops
  • Short term loans to traditional Plantation and Horticulture.
  • Pledge loans upto Rs. 10.00lakhs repayable in 12 mths irrespective of whether farmers have availed crop loans or not.
  • Working capital and term loans for financing production and investment requirements for agriculture and allied activities.
  • Loans to small and marginal farmers for purchase of land for agricultural purposes.
  • Loans to distressed farmers indebted to Non-Institutional lenders against appropriate collateral or group security.
  • Loans granted for Pre-Harvest or Post- harvest activities such as spraying , weeding, harvesting, grading, sorting, processing and transporting undertaken by individuals , SHGs and Co-operative in rural areas.
  • Short term loans for allied activities such as dairying, Fishery, Piggery, Poultry, Bee Keeping etc.
  • Purchase of agricultural implements and machinery – Iron ploughs, harrows, hose, land - levellers, bund formers, hand tools, sprayers, dusters, hay-press, sugarcane crushers, thresher machines etc.
  • Purchase of farm Machinery - Tractors, trailers, power tillers, tractor accessories viz Disc ploughs etc.
  • Purchase of trucks, mini-trucks, jeeps, pick up vans, bullock carts and other transport equipments etc., for agricultural purpose i.e., transportation of farm inputs / outputs.
  • Purchase of plough animals
  • Construction of shallow and deep tube wells, tanks, etc.
  • Constructing, deepening, clearing of surface wells, boring of wells, electrification of well, purchase of oil engines and installation of pumpsets, etc.
  • Purchase and installation of turbine pumps, construction of field chanelles .etc.
  • Lift irrigation projects
  • Installation of sprinkler / drip irrigation system (Mocro Irrigation)
  • Purchase of generator sets for agricultural purpose
  • Bunding of farm lands, levelling of land, terracing of dry paddy lands into wet irrigable paddy lands, development of farm drainage, reclamation of soil lands and prevention of salinisation, reclamation of ravine lands, purchase bulldozers etc.
  • Construction of Bullock sheds, implement sheds, tractor and tractor sheds, vehicle sheds, farm stores etc.
  • Construction and running of warehouses, godowns, silos and cold storages.
  • Production and processing of hybrid seeds of crops
  • Development of dairying and animal husbandry in all its aspects
  • Development of Fisheries
  • Development of poultry, piggery, beekeeping / sheep, goat etc
  • Development of sericulture
  • Bio gas plants.

Direct Loans to Agriculture & Allied activities to Corporates, Partnership Firms & Institutions

  • Loans up to Rs.1.00 crore comes under Direct Agriculture.
  • Loans in excess of Rs.1.00 crore, to the extend of only one third portion over and above Rs.1.00 crore also come under direct agriculture

Indirect loans to Agriculture

  • Loans in excess of Rs.1.00 crore to Corporates, Partnership Firms & Institutions, two thirds portion over and above Rs.1.00 crore come under indirect agriculture
  • Loans to Foor & Agro based processing units with investment cost on plant and macheinery upto Rs.10.00 crore undertaken by those other than individuals, SHGs and Co-Operatives in rural areas
  • Credit for purchase & distribution of fertilizers, pesticides, seeds etc.
  • Credit upto Rs.40.00 lakhs for purchase & distribution of inputs for teh allied activities such as cattle feed, poultry feed etc
  • Finance for hire purchase schemes for distribution of agricultural machinery and implements.
  • Loans for construction and running of storage facilities -warehouse, market yards, godowns, silos, and cold storages designed to store agriculture produce / products irrespective of the location.
  • Advances to custom service units managed by individuals institutions or organisations who maintain a fleet of tractors, bulldozers, well boring equipment, threshers, combines etc. and undertake work for farmers on contract basis.
  • Finance for setting up of Agri Clinic and Agri Business Centers
  • Loans to farments through primary agricultural credit societies (PACS), Farmers Service Socities (FSS), and Large Sized Adivasi Multipurpose Societies (LAMPS)
  • Loans to Co-operative Societies of farmers for disposing off the produce of members.
  • Financing farmers indirectly through the Co-operative system.
  • Loans upto Rs.30.00 lakhs for dealers in Drip irregation / Sprinkler Irregation / Agricultural Mechaniery irrespective of the location.
  • Loans to NBFCs for on lending to individual farments or their SHGs public JLGs.
  • Loans granted to NGOs / MFIs for on lending to individual farmmers of through SHGs / JLGs

Click here to get interest rates on farm loans

Solar Water Heating Systems
Salient features of financing Solar Water Heating Systems involving Interest Subsidy of MNES

Particulars Salient features
Purpose For financing Solar Water Heating Systems
Area of implementation To be implemented in all the States and Union Territories in the country
Eligible borrowers Domestic users, Institutional users and Commercial / Industrial users
Quantum of loan 85% of the cost of solar water heating systems
Margin 15% of the cost of solar water heating systems
Lending Rate of the Bank 10.75% p.a.
MNES prescribed rates i.e. ultimate interest rate charged on the borrowers, after availing interest subsidy 2% - for domestic users;

3% - for institutional users not availing accelerated depreciation; and

5% - for commercial / industrial users availing accelerated depreciation

Interest subsidy

Interest subsidy is available from MNES through IREDA being the difference between the lending rate of the bank at 10.75% and the MNES prescribed rates mentioned above, calculated on upfront basis for the entire period of loan, maximum of 5 years, by discounting at a rate of 6.50%. MNES has come out with a ready-reckoner for arriving at the quantum of interest subsidy for domestic, institutional and commercial / industrial users. After adjusting the interest subsidy, the ultimate interest rate would work out to 2% (for domestic users), 3% (for institutional users) and 5% (for commercial / industrial users).

Service charges to banks Banks are eligible for a service charge of Rs.200/= for each loan sanctioned to meet administrative cost, business development, publicity etc. from IREDA.
Classification To be classified based on the category of borrowers viz. Agriculture / MSE/ Other Priority Sector / Non priority sector, as the case may be.
Security norms Hypothecation of assets created out of bank finance.

For loans upto Rs.25,000/=, no third party guarantee or collateral security to be taken.

For loan above Rs.25,000/=, a suitable third party guarantee and / or adequate collateral securities / liquid securities to cover the loan amount

Repayment period Maximum period of 5 years. While fixing the repayment period, due dates of repayment to coincide with the harvesting season in the case of farmers and liquidity in the case of others.

Claiming of interest subsidy

: Interest subsidy would be claimed immediately after disbursal of loan and obtaining installation / commissioning certificate.

Approved list of manufacturers / suppliers of SWH Systems

MNES has communicated a list of 83 BIS approved manufacturers / suppliers of Flat Tube Collector based solar water heating systems and 10 MNES approved manufacturers / suppliers of Evacuated Tube Collector based solar water heating systems. Systems should be purchase and installed only form the approved list of manufacturers / suppliers.

Apportioning the interest subsidy received

Since the interest subsidy released by IREDA for the entire repayment period of 5 years upfront, the entire interest subsidy amount would be credited to the loan account of the borrowers in one-go so that the ultimate interest on borrowers would work out to 2% (for domestic users), 3% (for institutional users) and 5% (for commercial / industrial users).

Micro Credit

  • Loans of very small amount not exceeding Rs.50,000.00 per borrower provided either directly of indirectly through SHGs / JLG mechanisum or to NBFC / MFIs for onlending upto Rs. 50,000.00 per borrower.
  • Loans to distressed persons (other than farmers ) to pre-pay their debt to non- institutional lenders against approprate collateral or group security

Educational Loans

  • Educational loans granted to individuals for educational purposes upto Rs.10.00 lakh for studies in India and Rs.20.00 lakh for studies abroad.
  • Loans to NBFCs for on lending to individuals for educational purposes upto Rs.10.00lakh for studies in India and Rs.20.00 lakh for studies abroad.

Housing Loans – Rural Housing

  • Loans upto Rs.20.00 lakhs irrespective of location to individuals for purchase / construction of dwelling unit per family.
  • Loans for repairs to damaged dwelling units upto Rs. 1.00 lakh in Rural & Semi Urban areas and upto Rs.2.00 lakh in Urban & Metropolitan areas.
  • Assistance given to any Governmental agencies for construction of dewelling units or for slum clearence and rehabilitation of slum dewellers, subject ot a ceiling of Rs.5.00 lakh of loan per dewelling unit.
  • Assistance given to a Non-Governmental agency approved by NHB for the purpose of re-finance for construction / reconstruction of dewlling units or for slum clearence and rehabliation of slum dewellers subject to a ceiling of Rs.5.00 lakh per dewelling unit

Advances To Weaker Sections

Weaker section under priority sector shall include the following

  • Small and marginal farmers with landholdings of 5 acres and less, landless labourers, tenant farmers and share croppers
  • Artisans, village and cottage industries wher individual credit limits do not exceed Rs.50,000.00
  • Loans to distressed poor to prepay their debt to informal sector, against appropriate collateral or group security
  • Loans granted under (1) to (4) above, persons from Minority comminuties as may be notified by the Govt. Of India from time to time, & in States where one of the Miniority comminuties notified is in fact, in majority, item (5) will cover only the other notified minorities. These states / Union Terrritories are jammu & kashmir , Punjab, Sikkim, Mizoram, Nagaland & Lakshadweep.

Advances To SC/ST

Advances to State sponsored organisations for SC/ST for purchase and supply of inputs and /or the marketing of the output of the beneficiaries of these organisation.

Produce Marketing Loan

To Farmers to avoid distress sale of agricultural produce - Loans upto Rs.10 lakh granted to farmers, repayable in 12 months against hypothecation/pledge of agricultural produce including Warehouse receipt.

Vijaya Kisan Card

The scheme envisages meeting the entire crop production requirement of the Farmers including credit for post harvest /working capital requirements of allied Activities etc.
The scheme is flexible and farmer friendly. Personal accident insurance cover is available for Kisan cardholders.

Credit Guarantee Fund Scheme Of SIDBI To MSE

Collateral Free loans upto Rs.100 lakh to MSE

Technology Upgradation Fund Scheme For MSE

Eligible MSE units under textile and jute sectors are provided with 5% point Interest incentive.

Liquidity Finance To MSEs


All MSE units in existence for 3 years and above. The MSE units should have availed term loans earlier from the bank. The track record of the unit should be satisfactory.

Loan amount:

Not exceeding 60% of the marketable value of plant & Machinery or land & building.

Security :

Hypothecation of unencumbered plant & Machinery or land & building.

Margin :

Not less than 40% on the market value of the security.


Maximum period of 36 months

Rate of Interest:

9% to 16%


  • For further details, please refer HOCs on scheme guidelines.
  • For any relaxations in terms and conditions, clarifications on the issue, reference should be made to the General Manager – Credit Operations.
 Online Retail