Helping millions of Indian farmers benefit from our schemes.

Bank of Baroda, for rural India, with rural India.

Financing Construction of Farm Buildings Structures

  • Benefits
  • Features
  • Eligibility Criteria
  • Document Required
  • Fees & Charges
  • Most Important Terms & Conditions (MITC)

Financing Construction of Farm Buildings Structures : Benefits

  • Provides financial assistance to farmers for construction of different farm building structures including farm house cum dwelling units.

Financing Construction of Farm Buildings Structures : Features

  • Provides long term loans for different farm structures and farmhouse cum dwelling units
  • Reimbursement is allowed for expenses incurred for farmhouse cum dwelling unit

Financing Construction of Farm Buildings Structures : Eligibility Criteria

  • All individuals engaged in the cultivation of crop as owners of land or as permanent tenants or as leaseholders (for a reasonably long period) and have adequate productive utility of proposed construction.
  • For construction of farmhouse cum dwelling unit farmers should have their own land with sufficient income to repay the instalments.

Financing Construction of Farm Buildings Structures : Document Required

  • KYC Documents (AADHAR, Voter ID, PAN Card, Driving License etc.)
  • Passport Size photo
  • Quotation/Invoice (if available)
  • Land Records
  • Project Report (if available)
  • IT Returns (if available)

Financing Construction of Farm Buildings Structures : Fees & Charges

Processing charges:

  • Aggregate Agriculture exposure of Rs. 3.00 Lakhs- Nil
  • Above Rs 3 Lakhs - 1 % of the limit sanctioned with a maximum of Rs 100 lacs.

Inspection Charges:

  • Agriculture exposure upto Rs. 3.00 Lakhs- Nil
  • Above Rs 3 lakhs to Rs 10 Lakhs - Rs 250
  • Above Rs 10 Lakhs to Rs 1 Crore - Rs 1000
  • Above Rs 1 Crore - Rs 5000

Financing Construction of Farm Buildings Structures : Most Important Terms & Conditions (MITC)

Quantum of Loan No cap on loan amount
  • D.P. Note
  • General form of Guarantee, if stipulated
  • Mortgage of land and house/ Declaration as per Talwar committee norms
  • Comprehensive insurance of the house with Bank’s clause
Repayment Period
  • For Farmhouse cum dwelling unit Maximum 15 years
  • For other structures maximum 7-10 years depending upon the project undertaken.
Rate of Interest MCLR+SP
Margin Norms 15% (25% for reimbursement)
Other Informations
  • For reimbursement of expenses- farm house cum dwelling unit should have been constructed / Purchased not prior to 24 months
  • Plans should be approved by the competent authority
  • Disbursement will be done in stages after verifying the work done

Frequently Asked Questions (FAQs)

  • What is a farmhouse loan?

    Farmhouse loan refers to the financial assistance extended to the farmers for building infrastructure for farm use and its dwelling units.

  • What is the purpose of a loan for construction of farmhouse on agricultural land?

    The following list is comprehensive of all the purposes for loan for farmhouse:

    • Bullock shed
    • Implement shed
    • Tractor
    • Truck shed
    • Farm store
    • Godowns
    • Farm silos
    • Dutch barn
    • Water trough for farm animals
    • Threshing yard
    • Gur making shed
    • Fencing

    Construction of farmhouse

  • Can we build a farmhouse on agricultural land?

    Yes. Construction of a farmhouse on agricultural land is eligible under this scheme.

Add this website to home screen

Are you Bank of Baroda Customer?

This is to inform you that by clicking on continue, you will be leaving our website and entering the website/Microsite operated by Insurance tie up partner. This link is provided on our Bank’s website for customer convenience and Bank of Baroda does not own or control of this website, and is not responsible for its contents. The Website/Microsite is fully owned & Maintained by Insurance tie up partner.

The use of any of the Insurance’s tie up partners website is subject to the terms of use and other terms and guidelines, if any, contained within tie up partners website.

Proceed to the website

Thank you for visiting

We use cookies (and similar tools) to enhance your experience on our website. To learn more on our cookie policy, Privacy Policy and Terms & Conditions please click here. By continuing to browse this website, you consent to our use of cookies and agree to the Privacy Policy and Terms & Conditions.