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
Security
  • 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

Note : The Bank may use the services of agents in sales/marketing etc. of its various products

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.

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