Applying for Loan Against Agricultural Land: A Step-by-Step Guide

27 Jun 2023

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Obtaining a loan against agricultural land in India can be a valuable financial tool for farmers and landowners looking to meet their financial needs. This type of agricultural loan allows individuals to unlock the potential value of their agricultural land and utilize it for various purposes. In this blog post, we will delve into the process of obtaining a loan against agricultural land in India, outlining the essential steps and factors involved. We are sure that after reading this article, you will get the answer of all your queries like how to get loan against farm land, how much loan can I get on agriculture land, interest rate on loan against agriculture land, how to get loan against agriculture property.

Steps to Apply for Loan Against Agricultural Land

Step 1: Eligibility Criteria for Loan Against Agricultural Land

Ever thought that can we take loan on agriculture land? Before applying for a loan against agricultural land, it is crucial to understand the eligibility criteria set by the lending institutions. These criteria may vary slightly among different banks or financial institutions. Typically, eligibility factors include land ownership, land type (irrigated or non-irrigated), the size of the landholding, and income proof. Ensure that you meet these requirements before proceeding with the loan application.

Step 2: Documents Required to Apply for Loan on Agricultural Land

To apply for a loan against agricultural land, you need to gather the necessary documents. The documentation process may include providing proof of land ownership, such as sale deed or title deed, revenue records, land tax receipts, identity proof, address proof, income proof (such as income tax returns), and bank statements. These documents help establish your credibility and assist the lending institution in evaluating your loan application.

Step 3: Loan Application

Visit the nearest branch of a bank or financial institution that provides loans against agricultural land. Obtain the loan application form and fill it out accurately and completely. Provide the required details about the land, its valuation, and the loan amount you are seeking. Be sure to double-check all the information before submitting the application.

Step 4: Agricultural Land Valuation

Once you have submitted your loan application, the lending institution will assess the value of your agricultural land. They may have an in-house valuer or appoint a registered valuer to evaluate the land's worth. The valuer will consider factors such as the location, fertility, proximity to amenities, and market value of similar properties in the area. The land valuation report will determine the loan amount you are eligible for.

Step 5: Approval of Loan Against Agriculture Land

After reviewing your application, documents, and land valuation report, the lending institution will decide whether to approve your loan. They will consider factors such as your eligibility, creditworthiness, and the viability of the land as collateral. If you meet the institution's criteria and the land valuation aligns with their requirements, your loan application is likely to be approved.

Step 6: Loan Disbursement

Upon loan approval, the lending institution will proceed with finalizing the loan agreement. They will provide you with the necessary paperwork, including the terms and conditions of the loan. Once the agreement is signed, the loan amount will be disbursed to your bank account or provided as a demand draft, based on your preference.

Step 7: Repayment of Loan Taken Against Agricultural Land

Repaying the loan against agricultural land typically follows a predetermined schedule. You will need to make regular installment payments, which may include both the principal amount and the interest charged. The repayment duration and frequency will be defined in the loan agreement. It is essential to honor the repayment schedule to avoid any penalties or legal consequences.

For your interest in applying for loans with any branch of Bank of Baroda, you can fill out an online application form.


Obtaining a loan against agricultural land can be a beneficial financial solution for individuals looking to leverage the value of their land. By understanding the process involved, meeting the eligibility criteria, and providing the required documentation, you can navigate the loan application process with confidence. However, it is advisable to consult with professionals or financial advisors to ensure you make informed decisions and choose the right lending institution that best suits your needs.

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