Category Archives: Uncategorized

A Complete Guide to Agriculture Loan Options for Farmers in 2025

August 07, 2025

In 2025, securing the right agriculture loan will be crucial for Indian farmers to thrive. From crop loan schemes to MSME finance, solar loan for farmers, and agri business loan options, this guide from Agriwise helps you navigate the best agriculture loan options in India.

Agriculture loan landscape: Key figures & trends

In FY 2024‑25, formal farm credit in India rose to ₹28.98 lakh crore, with projections to exceed ₹31.5 lakh crore in FY 2025‑26—over ₹32 lakh crore per NABARD forecasts. Over 60% of this is short-term crop loan schemes financing seasonal needs, with the rest supporting investment in machinery, infrastructure, and allied sectors. In addition, short-term credit has nearly doubled since 2014‑15, and the share of small and marginal farmers accessing agriculture loans has grown to 76% in 2023‑24 according to PIB.

As per Farmonaut, projected average agriculture loan interest rate in India for 2025 is approximately 8.2% p.a.—down from around 8.7% in 2023—with effective rates as low as 4% for prompt repayment under interest subvention schemes.

Top Types of Agriculture Loan Options

Crop loan schemes / Farmer loan 2025: Under NABARD–GoI interest subvention, crop loans up to ₹3 lakh are extended at 7% nominal interest, and farmers repaying promptly may get an extra 3% discount—bringing the effective rate to just 4%. Kisan Credit Cards (KCC) provide working capital credit for seeds, fertilisers, labour, with repayment aligned to harvest cycles. These are top agri finance tools for short‑term needs.
Farm equipment finance & Agri business loan: Long‑term farm equipment finance supports buying tractors, drip irrigation, solar pumps, or machinery—with tenures of 3–7 years and interest rates in the range of 6%–10% depending on collateral and green technology focus. For larger ventures, agri business loan options are available from banks like HDFC or ICICI with rates from 9%–11%, requiring business plans and a bit of collateral.
Agri‑infra, warehouse finance & working capital loan for farmers: Under NABARD’s AMI sub-scheme, a credit-linked facility offers a subsidy of 25–33% for projects such as warehouses, cold-storage, and market infrastructure—supported via warehouse finance options for small and medium-scale infrastructure borrowers. Working capital loan for farmers via MSME credit lines help with post‑harvest costs, sorting, packaging, or distribution.
Collateral‑free agri loan & MSME loan for agriculture: Thanks to RBI’s policy, small and marginal farmers can access collateral free agri loan up to ₹2 lakh (recently raised from ₹1.6 lakh), via banks or small finance banks. For agri‑based micro, small and medium enterprises like FPOs or food‑processing firms, MSME loan for agriculture and invoice discounting for agri MSMEs provide credit tied to receivables and inventory. NABARD’s NABSAMRUDDHI and NABKISAN schemes support MSME finance and FPO loan schemes with targeted support.
Loan against property for farmers & solar loan for farmers: Term loans backed by real estate—loan against property for farmers—are available at 7‑9% interest rates, supporting working capital or expansion. Similarly, solar loan for farmers helps install solar pumps or panels, often with concessional rates and refinance support from NABARD, aiming to reduce energy costs and promote sustainability.
FPO loan scheme & government loan for farmers: NABARD and government‑backed FPO loan scheme targets Farmer Producer Organisations, giving upto 100% refinance and grant support. Various state governments—e.g., UP’s Rs 5,000 crore subsidised scheme—provide government loan for farmers with special interest subsidies (~3%) to modernise cold storage and farm infrastructure.

Choosing the Right Agriculture Loan in 2025

Role of NABARD schemes 2025 & Agriwise services

NABARD Schemes 2025 such as STCRC, LTRCF, AMI sub‑scheme, dairy lending, KCC refinance and agro‑infrastructure refinance underpin most agriculture loan options—ensuring subsidised rates, refinance support, and grants.

At Agriwise, we offer end‑to‑end assistance in identifying the best loan for farmers in India—from applying for KCC crop loans, MSME loan for agriculture, FPO loan scheme, solar loans, and connecting you with lenders offering farm equipment finance, collateral‑free options, working capital loans, or even loan against property. We help you compare by interest rate, tenure, and eligibility to ensure you get the optimal credit solution.

Tips to Secure Best Agriculture Loan 2025

Choose the right category—short‑term crop loan, MSME finance, solar loan, infrastructure, etc.
Repay promptly to access better agriculture loan interest rate such as the 3% prompt repayment incentive.
Join JLGs (Joint Liability Groups) or FPOs for easier access to collateral‑free or group‑supported loans.
Use bankable business plans for agri business loan or equipment finance.
Access government or NABARD schemes via Agriwise to streamline application and documentation.

Conclusion

In 2025, agriculture loan options in India span crop loans, working capital, equipment finance, agri‑infrastructure support, solar financing, collateral‑free credit, and FPO/MSME schemes. Interest rates range from as low as 4% for crop loans to around 9‑11% for business/investment loans, powered by government and NABARD interventions. With over ₹31–32 lakh crore in total farm credit expected in FY 2025‑26, farmers have unprecedented access to formal credit channels.

Whether you’re a smallholder seeking collateral-free agri loan, an FPO exploring invoice discounting for agri MSMEs, or a solar‑pump owner evaluating a solar loan for farmers, Agriwise can guide you through the process—from matching schemes to application support. Maximise your productivity and growth with the best agriculture loan strategy to empower your farming future.

Disclaimer

The content published on this blog is provided solely for informational and educational purposes and is not intended as professional or legal advice. While we strive to ensure the accuracy and reliability of the information presented, Agriwise make no representations or warranties of any kind, express or implied, about the completeness, accuracy, suitability, or availability with respect to the blog content or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. Readers are encouraged to consult qualified agricultural experts, agronomists, or relevant professionals before making any decisions based on the information provided herein. Agriwise, its authors, contributors, and affiliates shall not be held liable for any loss or damage, including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from reliance on information contained in this blog. Through this blog, you may be able to link to other websites that are not under the control of Agriwise. We have no control over the nature, content, and availability of those sites and inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them. We reserve the right to modify, update, or remove blog content at any time without prior notice.

Seasonal Crop Loans: What Every Farmer Should Know!

July 30, 2025

As India’s agricultural landscape evolves, the demand for timely and structured financial solutions has never been greater. In 2024–25, India’s agricultural credit target has been raised to ₹20 lakh crore, a strong policy signal aimed at ensuring liquidity for farmers through accessible and flexible crop finance. Among the various funding options available, seasonal crop loans remain one of the most vital tools to help farmers meet cyclical agricultural expenses—like seeds, fertilisers, pesticides, and labour—without disrupting cash flow or compromising yield.

But what do farmers need to know about crop loans?

We‘ll particularly discuss about seasonal crop finance, and how agrifintech platforms like Agriwise are assisting them in accessing short-term capital at the right time.

What are seasonal crop loans?

A seasonal crop loan is a short-term credit facility provided to farmers to finance the cost of cultivation and other associated agricultural operations during the crop cycle. These loans usually align with sowing and harvesting seasons—Kharif, Rabi, and Zaid—ensuring that farmers have timely access to funds when input costs are at their peak.

Unlike long-term farm loans used for purchasing land or machinery, crop finance for farmers is designed to cover operational expenses such as:

Seed purchase
Fertilisers and pesticides
Labour wages
Irrigation and water management
Harvesting and transportation

These agriculture loans are typically repaid after the harvest season, often in a lump sum or structured installments, depending on the lender’s terms.

Why do seasonal crop loans matter?

Timely input procurement: Farmers can purchase high-quality inputs on time, ensuring optimum crop health and yield.
Reduced dependency on informal credit: Many smallholder farmers rely on high-interest informal loans. Seasonal crop finance offers a formal, regulated alternative with better interest rates.
Cash flow stability: It provides working capital during the sowing season, which is otherwise a period of cash crunch for many farming households.
Improved productivity: With access to adequate resources, farmers can adopt better farming practices, ultimately boosting their productivity and income.

Best crop loan schemes in India

In addition to commercial banks and cooperative societies, several central government schemes offer crop finance for farmers, such as:

Kisan Credit Card (KCC): Offers short-term loans up to ₹3 lakh at a subsidised interest rate of 4% (subject to timely repayment).
NABARD Refinance Scheme: Supports lending institutions by providing refinance for crop loans.
Interest Subvention Scheme: Provides interest relief for timely repayments of seasonal agri loans.

Private agrifinance companies in India, like Agriwise, are complementing these schemes with digital-first, flexible financial solutions tailored for today’s farmers.

Agriwise: Empowering seasonal farming with smart credit

As a leading agri finance company in India, Agriwise enables farmers to access credit through tech-enabled processes that are fast, transparent, and farmer-friendly.

Here’s how Agriwise supports seasonal crop finance:

Loan Against Property: For larger funding needs, Agriwise offers LAP solutions tailored for agribusinesses and MSMEs engaged in farming & other businesses.
Farmer financing: Agriwise’s farmer financing is designed to finance the purchase of seeds, fertilisers, pesticides, and other critical inputs.
Digital onboarding: Quick loan processing through a tech-enabled platform ensures timely disbursal—crucial for seasonal agri loan requirements.
Farmer scorecard & advisory: Agriwise’s team provides on-ground support to ensure farmers receive the loans they are eligible for.

Agriwise also caters to small business owners in the rural economy by offering finance for MSMEs, finance for small business owners, and warehouse-based agricredit services—making it a full-spectrum agri loan partner.

How to get finance for seasonal crops?

Navigating the path to secure a crop loan has become more accessible thanks to digitisation and inclusive policies. Here are the general steps:

Determine your loan requirement: Estimate the cost of cultivation and operational needs.

Select the right lender: Choose from banks, NBFCs, or agrifintech platforms like Agriwise.

Prepare required documents: These usually include land ownership records, Aadhaar card, income proof, and crop plans.

Apply digitally or via field agent: Submit the application online or at the nearest Agriwise service centre.

Loan disbursal: Once approved, funds are directly transferred to the farmer’s account—often within days.

What are the benefits for farmers?

Lower interest rates: Especially when availed through government-linked schemes or responsible NBFCs like Agriwise.
Flexible repayment: Repayment schedules aligned with crop cycles to avoid financial stress.
Improved financial planning: Structured loans improve credit discipline, enabling access to future loans at better terms.
Eligibility for subsidies: Access to crop insurance and government subsidies often require formal credit linkage.

Conclusion

Access to seasonal crop loans can be a game-changer for Indian farmers, especially smallholders who often struggle with liquidity during peak farming periods. With the right agriculture loan, farmers can enhance productivity, protect their crops, and strengthen their livelihoods. Agriwise is revolutionising crop finance for farmers by offering quick, tech-driven, and farmer-centric financing options.
As the agrarian economy grows, embracing smart agrifinance solutions like those offered by Agriwise will be crucial in building a resilient, productive, and financially empowered rural India.

Agri‑Infra Loans: Building Rural Assets through Finance

July 24, 2025

Rural finance has emerged as a key driver in transforming India’s agrarian landscape in recent years. Among these, agri-infra loans, also known as agriculture infrastructure loans, have catalysed the creation of vital rural assets—warehouses, cold chains, and processing facilities—that empower farmers to enhance their incomes, reduce post-harvest losses, and modernise their businesses. These funds complement existing agricultural finance tools, such as agri-business loans, farm infrastructure finance, and traditional agri loans in India.

Why agri‑infra loans?

Traditional farmer credit often supports input costs—seeds, fertilisers or irrigation—through short‑term products like the Kisan Credit Card, which held ₹9.81 lakh crore outstanding across 7.75 crore accounts as of March 2024, as per the Press Information Bureau. But what about long‑term assets? Enter agri loans for warehouse financing, cold storage loans, and farm asset creation schemes that underpin supply-chain resilience and income optimisation.

Agricultural Infrastructure Fund (AIF): A game‑changer agri loans!

Launched in August 2020, the AIF is a ₹1 lakh crore initiative offering medium- to long-term debt with:

3% interest subvention on loans up to ₹2 crore for 7 years,
Credit guarantee via CGTMSE for up to ₹2 crore,
Tenure up to 7 years, with moratoriums ranging from 6 months to 2 years.

By January 2025, AIF had sanctioned ₹51,364 crore across 84,159 projects—including warehouses, cold storages, processing & grading units. These interventions align tightly with rural infrastructure finance and rural development funding, boosting livelihoods beyond raw production.

“On an average, this Agriculture infrastructure fund initiative has enabled farmers to get 11- 14% higher prices for their produce.” – Shivraj Singh Chouhan, Union Minister of Agriculture and Farmer’s Welfare

NABARD’s role in farm asset creation

The National Bank for Agriculture and Rural Development (NABARD) acts as a key conduit, providing refinance support via its Rural Infrastructure Development Fund (RIDF) and new AMI sub-schemes. In FY 2024–25, NABARD extended a record ₹5,830 crore to Jharkhand alone, financing irrigation, bridges, rural godowns, and cold storage—benefiting over 2 lakh farmers, according to The Economic Times. NABARD also 2024–25 channelled ₹24,500 crore through RIDF, with ₹19,500 crore disbursed.

Additionally, it supports schemes like Gramin Bhandaran Yojana, offering subsidies for rural godown construction up to 30,000 tonnes. These are critical to rural asset creation, enabling cold chain loans and warehouse financing to reach marginal farmers and FPOs.

State-level initiatives: Cold storage & e-Marketing

State governments are also stepping up. In Uttar Pradesh, the state is deploying ₹5,000 crore in agri-infra loans with a 3% interest subsidy to promote cold storage, pack-houses, warehouses, and e-marketing under the Agri Infrastructure Fund and the Self-Reliant Integrated Development Scheme (The Times of India).

Agriwise for agri loans

Agriwise Finserv, a leading NBFC company, is delivering customised agri finance solutions that support rural infrastructure development. Through its seamless digital lending platform, Agriwise provides quick and collateral-backed agri business loans, warehouse financing, and farm infrastructure finance tailored to the evolving needs of farmers, FPOs, and agri-entrepreneurs.

By simplifying access to formal credit loans and partnering with banks, NBFCs, and government schemes, Agriwise bridges the rural credit gap, fostering long-term asset creation. With a focus on transparency, speed, and financial literacy, Agriwise is driving sustainable growth and unlocking the true potential of India’s agricultural sector.

Opportunities: Farmers, FPOs & Agri Entrepreneurs

Agri‑Infra Loans are designed for:

Individual farmers seeking cold storage or warehousing,
FPOs/FPCs building processing and marketing units,
Agri‑startups, SHGs, cooperatives, and rural MSMEs.

Such entities can tap into NABARD AIF, state bank schemes (e.g., SBI’s cold storage loan of up to ₹50 crore, with 10–11% interest over 10 years), CGTMSE guarantees, and central subsidies. Moreover, new initiatives like NABARD’s e-Kisan Credit Card portal streamline the application and disbursement process.

Challenges & the road ahead

Awareness remains a hurdle; many farmers still lack clarity on government schemes for farmers. Under‑financing is also a concern—banks are urged to offer adequate credit for rehabilitation and plans. With agri‐credit projected to surpass ₹32 lakh crore by FY 2025‑26, a 14% increase from FY 2024‑25, accessible infrastructure loans will be key to sustainable rural transformation, as per The Times of India.

Conclusion

Agri loans—underpinned by AIF, NABARD, CGTMSE, agritech, and state-level pushes—are opening new frontiers in rural development funding and asset-based agri finance. Whether you’re a small farmer building a cold storage unit, an FPO creating a grading centre, or an agri-entrepreneur setting up a warehouse, these tools offer affordable, backed credit to scale up, de-risk your operations, and get the most from the land. For those ready to embrace agriculture infrastructure loans, now is a fertile moment.

Why financial literacy in rural areas is key to agri-finance and credit access for farmers?

July 16, 2025

In a country where nearly 65% of the population resides in rural areas and agriculture sustains millions of livelihoods, financial literacy is no longer a luxury—it’s a necessity. The intersection of financial education and its impact on agri-finance, particularly agriculture loans for farmers, has never been more critical. Without adequate financial knowledge, rural communities struggle to navigate farm loan schemes in India, make informed credit decisions, or even understand formal banking processes.

According to a report by the National Centre for Financial Education, only 27% of Indian adults meet the basic financial literacy requirements, which is significantly below the global average of 42%.

The importance of basic financial knowledge for rural empowerment

Understanding budgeting, loans, interest rates, insurance, and credit terms is fundamental for any individual. In rural India, however, low levels of formal education and lack of exposure to banking systems often result in limited financially sound individuals. This not only hinders effective money management but also restricts access to vital financial services for rural markets, such as agriculture loans or crop insurance.

Financial literacy and its impact on agri-finance

A financially literate farmer is more likely to:

Apply for government-backed farm loan schemes in India (such as KCC or PM-KISAN)
Compare loan offers for better interest rates and repayment terms
Understand credit scoring and how it affects borrowing capacity
Invest in agri-inputs or equipment using formal credit channels instead of informal lenders

This directly enhances credit access for farmers, allowing them to invest in better seeds, irrigation systems, and farming technology—all leading to increased productivity and income.

Does financial literacy matter in rural agribusiness?

Absolutely! Financial knowledge among rural agribusiness owners is key to scaling operations. Small agribusinesses, such as dairy cooperatives, agro-processing units, and Farmer Producer Organisations (FPOs), often operate informally. Without robust financial education, they struggle to maintain records, access working capital, or pitch to financial institutions for scaling.

Empowering these entities through rural financial education can unlock large-scale impact. For instance, financial training under NABARD’s Self Help Group-Bank Linkage Programme led to an increase in formal credit access among participating rural women.

Barriers to financial literacy in rural communities

Despite efforts, several challenges remain:

Low awareness of banking and loan documentation processes
Language and literacy barriers making financial documents hard to understand
Cultural resistance towards digital finance and formal lending institutions
Limited reach of financial institutions in remote villages

Addressing these gaps requires targeted awareness campaigns, use of vernacular content, and doorstep banking services.

Agriwise: Enabling financial inclusion in agri-finance

At Agriwise Finserv, we believe that financial literacy is central to rural empowerment and sustainable agriculture. As a specialised agri-financing NBFC, Agriwise offers a wide range of tailored credit solutions for farmers, FPOs, and agri-entrepreneurs. From input financing and working capital loans to secured funding based on commodity stocks, Agriwise bridges the gap between formal finance and rural agribusinesses.

Our approach extends beyond lending—we engage with farming communities to improve financial literacy, help them understand loan products, and adopt responsible credit practices. This not only increases access to agricultural finance in rural areas, but also builds long-term creditworthiness among borrowers.

How to get a farm loan with better financial knowledge?

Navigating the farm loan process becomes significantly easier with financial literacy. Here are the steps where it helps:

Understanding eligibility: Knowing the requirements for schemes like Kisan Credit Card (KCC)
Document preparation: Collating land records, Aadhaar, bank passbook, and crop patterns
Choosing a lender: Comparing cooperative banks, NBFCs, or fintech lenders
Evaluating terms: Assessing interest rates, tenure, and repayment schedules
Post-loan management: Maintaining credit scores, timely repayments, and renewals

Conclusion

So, does financial literacy matter in India’s rural landscape? Unequivocally, yes.

It is a critical enabler of rural empowerment, better credit access for farmers, and overall agricultural productivity. By investing in financial literacy in rural areas, we not only equip farmers with knowledge but also unlock the full potential of agricultural finance in India. For Agriwise, the path forward lies in combining accessible finance with educational outreach, creating a financially resilient rural India ready to thrive.

Leveraging Supply Chain Finance for Small Agri MSMEs

July 10, 2025

India’s agri-MSME sector plays a vital role in supporting the agricultural economy, accounting for nearly 33% of total MSMEs in the country. Despite this, over 80% of small agri-businesses face challenges in accessing timely and affordable credit, which hampers their ability to expand, invest in technology, and build resilient supply chains. This is where supply chain finance (SCF) emerges as a transformative solution—enabling agri-MSMEs to unlock working capital, optimise cash flows, and strengthen trade relationships.

At Agriwise, we recognise that efficient financing is key to empowering India’s agri-value chain. Through structured and digital-first finance solutions, Agriwise supports small enterprises—be it farmer producer organisations (FPOs), agri-input dealers, aggregators, or processors—with the liquidity needed to thrive in a competitive market.

What is Supply Chain Finance?

This finance refers to a set of financial solutions that optimise cash flow by allowing businesses to extend their payment terms to suppliers while enabling suppliers to get paid earlier. It is particularly beneficial in agri-supply chains where seasonal production cycles, inventory turnover, and delayed payments often create liquidity stress for small businesses.
Unlike traditional bank loans, SCF is transaction-based and tied to actual trade flows. This reduces credit risk and ensures that working capital is aligned with real business needs.

Why Supply Chain Finance is Critical for Agri MSMEs?

Small agri-MSMEs often operate on thin margins, limited collateral, and unpredictable cash flows. This creates major financing bottlenecks, especially when trying to scale operations, purchase inputs in bulk, or fulfil large buyer contracts.
Here’s how it addresses these challenges:

Improved liquidity and working capital: With SCF, small businesses can receive payments faster without waiting for buyers to settle invoices. This quick infusion of working capital improves day-to-day operations, enhances supplier confidence, and reduces dependency on informal credit.

Lower financing costs: Since SCF is typically buyer-led and risk is mitigated through transactional visibility, lenders offer lower interest rates than unsecured loans. Platforms like Agriwise use data analytics to assess real-time risks, ensuring fair pricing for MSMEs.

Strengthened buyer-supplier relationships: SCF encourages long-term, stable relationships between buyers and suppliers. When MSMEs are assured of quicker payments, they can deliver better service and maintain quality standards, strengthening their position in the agri-ecosystem.
Digital traceability and transparency: Digital SCF platforms like Agriwise provide end-to-end visibility on invoices, payments, and credit terms—enabling MSMEs to plan production and procurement efficiently. It also builds trust among stakeholders across the value chain.

Agriwise: Bridging the Finance Gap for Agri MSMEs

Agriwise Finserv has been at the forefront of enabling agri-MSMEs with targeted financial tools that meet their evolving needs. Our supply chain finance solutions are customised to support:

Input suppliers catering to large farmer clusters
FPOs engaged in aggregation and contract farming
Agri processors procuring from multiple geographies
Retailers and distributors across rural markets

By combining traditional credit underwriting with digital data from agribusiness operations, Agriwise ensures that even first-time borrowers can access structured credit linked to their trade activity. Our approach reduces approval time, minimises documentation, and promotes financial inclusion at scale.

Future of SCF in Indian Agri Ecosystem

With the government’s focus on formalising the agri-value chain through eNAM, ONDC, and FPO promotion schemes, the demand for agile credit solutions like supply chain finance is set to grow. As per industry estimates, the Indian supply chain finance market could exceed ₹60,000 crore by 2026, with agri-MSMEs representing a large untapped segment.

Agriwise Finserv is playing a key role in democratising access to SCF by leveraging alternate data, satellite insights, and mobile-first platforms that reach the last mile. By embedding finance into agri-transactions, they are turning every invoice into a growth opportunity.

Conclusion

Supply chain finance is no longer a luxury—it is a necessity for agri-MSMEs navigating volatility, input inflation, and delayed receivables. With smart financing solutions from Agriwise, small agri-businesses can unlock new markets, invest confidently, and contribute more meaningfully to India’s agricultural growth story. As the agri sector continues to digitalise and integrate, leveraging supply chain finance will be key to building resilient, efficient, and inclusive value chains.

Top Government Schemes for Farmers: What to Know Before Applying for Credit?

July 03, 2025

Agriculture remains the backbone of India’s economy, employing over 50% of the nation’s workforce and contributing nearly 18% to the country’s GDP. Yet, farmers—especially smallholders—often face severe financial constraints in accessing quality inputs, mechanisation, storage facilities, and post-harvest services. Recognising this, the Indian government has rolled out several targeted initiatives to provide timely and affordable credit to the farming community. From subsidised loans to direct benefit transfers, these government schemes for farmers are designed to improve financial inclusion and build long-term resilience in the agriculture sector.
However, to fully utilise these benefits, farmers must understand the eligibility requirements, application process, and documentation involved. What are the top credit-linked schemes, and what do farmers need to know before applying—empowering them to make informed choices that support their growth and well-being? Let’s understand that!

Kisan Credit Card Schemes (KCC schemes): According to the Press Information Bureau, operative KCC accounts have disbursed over ₹10.05 lakh crore as of December 2024, benefiting 7.72 crore farmers. The government’s Modified Interest Subvention Scheme (MISS) supports short-term loans up to ₹5 lakh at reduced rates—1.5% subsidy to banks, plus a prompt repayment incentive of 3%, effectively lowering the interest rate to 4%.
Additionally, collateral-free loans of up to ₹2 lakh (soon rising to ₹2 lakh after the RBI raised the collateral-free limit from ₹1.6 lakh to ₹2 lakh in late 2024) ensure smallholder farmers receive hassle-free credit.
PM Kisan Samman Nidhi (PM-KISAN): Launched in February 2019, PM-KISAN provides ₹6,000/year in three installments to landholding farmers. While not a credit scheme per se, this cash transfer enhances liquidity and supports the rural agricultural economy. A substantial beneficiary base—over 12 crore farmers—makes it a key government scheme for welfare for farmers.
Agricultural Infrastructure Fund (AIF): Introduced in 2020 with a ₹1 lakh crore corpus, AIF finances agri-infrastructure like cold stores, warehouses, and processing units. According to the Press Information Bureau, ₹47,575 crore has been sanctioned across 74,508 projects as of August 2024—supporting 6,623 warehouses, 688 cold stores, and 21 silos, which adds 500 LMT storage capacity. Farmers, FPOs, cooperatives, and panchayats are eligible to apply. Enhanced credit guarantee coverage via NABARD’s guarantee trust reduces lender risk.
NABARD Refinancing & Rural Agri MSME Funding: NABARD, established in 1982, plays a dual role in direct financing and refinancing to partner banks, facilitating rural credit. It supports agri-MSMEs through capital subsidy and credit-linked capital subsidy schemes, enabling infrastructure development, organic input manufacturing, dairy entrepreneurship, and more. State-level initiatives, such as Mukhya Mantri Krishak Samridhi Yojana in Uttar Pradesh, also channel NABARD refinancing through cooperative banks to reach smallholders.
PM-KUSUM & Green Energy Schemes: Under PM-KUSUM, farmers receive up to 60% subsidy for installing solar pumps and developing community solar projects. This furthers energy security, lowers diesel dependence, and offers additional income through surplus electricity sales. AIF’s synergy with the PM-KUSUM Component-A further enhances funding options.
Additional Support—Crop Insurance & Godown Subsidies: Insurance under the PMFBY (Pradhan Mantri Fasal Bima Yojana) provides comprehensive coverage against crop loss and post-harvest damage. Gramin Bhandaran Yojana offers capital subsidies for building or renovating rural godowns, increasing farmers’ ability to store produce, avoid distress sale, and access MSP or e-NAM.

Before You Apply: Key Considerations

Eligibility criteria: Read scheme-specific norms, including farm size, cropping pattern, and FPO status.
Documentation: Aadhar, land records, bank account, income/farmer certificates are essential.
Scheme integration: You can simultaneously access various government schemes and subsidies for farmers in India, including KCC, PM-KISAN, PM-KUSUM, PMFBY, and AIF.
Interest subvention: Prompt repayment is often necessary to maximise benefits; KCC requires timely repayment for full subsidy.
Collateral requirements: Failure to meet subsidies or exceeding thresholds may necessitate collateral.

How Agriwise Is Helping Farmers?

Agriwise Finserv is StarAgri’s specialised financing arm, offering flexible, tech-driven agri and MSME finance solutions that support Indian farmers, FPOs, agri-input retailers, and value chain participants by providing transparent, tech-driven finance solutions. Their product suite includes:

Secured Business Loan (Loan Against Property or LAP)
Warehouse receipt financing (Commodity finance)
Invoice Bill Discounting (Supply Chain Finance)
Farmer financing & Solar financing

By partnering with over 25 Indian banks and refining processes through digital platforms, Agriwise ensures faster disbursements and efficient access to credit. They are bridging gaps in rural agri-MSME funding and enabling farmers to fully leverage government-sponsored schemes.

Conclusion

The landscape of government schemes for farmers in India is robust—from welfare programmes like PM-KISAN and PMFBY to credit-led schemes like KCC, AIF, and NABARD-backed infrastructure financing.

To maximise benefits:

Choose schemes aligned with your farming needs.

Prepare accurate documentation.

Leverage interest subsidies and insurance.

Integrate the scheme benefits.

Utilise structured financing partners, such as Agriwise, for improved access and process efficiency.

With ₹10+ lakh crore KCC disbursals, ₹47,575 crore AIF support, and thousands of cold stores and warehouses sanctioned, these Government schemes and subsidies for farmers in India are transforming the rural economy. The key is awareness, diligence, and smart financial planning—empowered by institutions like Agriwise.

Future of Agricultural Finance: What’s Changing for Rural Borrowers?

June 25, 2025

As India’s farming sector continues to modernise, agricultural finance is playing an increasingly crucial role in supporting rural livelihoods, enhancing productivity, and promoting sustainable growth. The future of agri finance is being reshaped by digital technology, government schemes, and evolving credit models that are transforming how rural borrowers access capital. From traditional seasonal loans to innovative credit tools, the entire value chain of agriculture financing in India is adapting to meet the rising needs of farmers in 2025 and beyond.

As per the Press Information Bureau, over the past decade (2014-15 to 2023-24), agricultural credit disbursement has witnessed an average annual growth rate of more than 13%, reflecting the increasing financial support extended to the sector. In the financial year 2023-24, agricultural credit disbursement reached ₹25.48 lakh crore. For FY 2024-25 the Government of India has set a GLC target of ₹27.5 lakh crore with a dedicated sub-target of ₹4.20 lakh crore for allied activities.

The Changing Landscape of Agricultural Finance

For decades, rural credit in India has been largely dependent on informal sources and subsidised lending through public-sector banks and cooperatives. While this helped bridge immediate capital gaps, it often left farmers vulnerable to exploitation and underfunded for long-term needs. However, in recent years, the sector has witnessed a dynamic shift toward formal, tech-enabled, and farmer-centric financial models.

Key trends reshaping agricultural finance include:

Digitisation of loan disbursement and repayment: With the increased penetration of smartphones and internet connectivity in rural areas, financial institutions are utilising digital platforms to process and disburse loans faster and more securely.
KYC-linked access to credit via Jan Dhan accounts: The government’s financial inclusion drive through the Jan Dhan Yojana has provided millions of farmers with formal banking access, enabling direct benefit transfers, crop insurance claims, and more transparent rural credit in India.
Customised loan products: Banks and NBFCs are now offering crop-specific, equipment-based, and input-linked loans tailored to individual farmer profiles.
Credit scoring through agri-data: Lenders are leveraging weather data, satellite imagery, soil health records, and market trends to assess creditworthiness, especially for first-time borrowers without collateral.

These developments mark a clear shift in agriculture financing in India—from reactive lending to proactive, risk-assessed financial solutions.

Agri Finance Trends 2025: What to Expect

As we look toward 2025, several agri-finance trends are expected to shape the sector further:

Integration of agri-fintech platforms: Startups and agri-focused fintechs are creating seamless digital ecosystems that enable farmers to access loans, insurance, market prices, and advisory services through a single app.
Climate-resilient finance: Lenders are increasingly factoring climate risk into their decisions and offering products such as weather-indexed insurance and resilience loans to help farmers recover from crop losses.
Value chain financing: Financing is moving beyond production to cover the entire agri value chain—including warehousing, processing, and marketing—creating new opportunities for FPOs and agri-entrepreneurs.
ESG-aligned lending: Sustainable farming practices and traceability in agri supply chains are attracting ESG (Environmental, Social, Governance) aligned investments, incentivising farmers who adopt eco-friendly methods.

These agri finance trends 2025 reflect a growing acknowledgement that rural borrowers are no longer just recipients of credit—they are active participants in a larger, data-driven, and value-oriented ecosystem.

The Role of Agriwise: Empowering Farmers with Smart Finance

Agriwise, one of India’s leading agri-financing institutions, is at the forefront of enabling the future of agricultural finance through a unique blend of technology, partnerships, and farmer-first solutions.

With a mission to provide timely and affordable credit to India’s rural backbone, Agriwise offers:

Customised term loans and working capital for farmers, agri-input dealers, processors, and traders.
Digital loan processing with minimal paperwork and faster turnaround, leveraging data analytics and remote verification.
Partnerships with FPOs and input companies to expand the reach of structured credit offerings.
Risk mitigation tools, such as insurance tie-ups and advisory services, enhance credit sustainability.

By addressing both the supply and demand side of rural credit, Agriwise ensures that financial support is not just available but also accessible and impactful for India’s farmers. Their work exemplifies the kind of financial innovation needed to drive inclusive growth in agriculture financing in India.

Bridging the Gaps: Challenges and Opportunities

Despite the progress, several challenges persist in ensuring the full potential of agri finance is realised:

Many smallholder farmers still lack formal credit history or collateral.
Credit penetration in tribal, remote, or rainfed regions remains low.
Women farmers continue to face barriers in accessing loans.

To address these, greater emphasis is needed on credit awareness, digital literacy, gender-inclusive policies, and improving last-mile delivery. Strengthening rural banking infrastructure and encouraging public-private partnerships will also be crucial.

On the other hand, rising agri exports, increasing food processing investments, and growing rural entrepreneurship are creating fresh avenues for structured agricultural finance.

Conclusion

The future of agri finance in India is being driven by innovation, inclusivity, and integration. As traditional lending models give way to more innovative, data-led, and customer-oriented approaches, rural borrowers are gaining more control over their financial decisions. Agriwise is redefining how agricultural finance is delivered and the road ahead looks promising for millions of farmers who now see finance not as a burden—but as a tool for growth, security, and prosperity.

As we step into the next chapter of rural credit in India, one thing is clear: agriculture and finance are no longer parallel tracks—they are converging to create a robust, resilient, and digitally empowered farming future.

How Agri MSMEs Loans Can Accelerate Growth & How Agriwise Can Help?

June 19, 2025

Indian agriculture is undergoing a technological transformation, powered by agripreneurs and small rural enterprises. An agri MSME loan, specifically for farming-related services such as processing, logistics, warehousing, and input distribution, is central to this evolution.

As of FY 2024–25, credit outstanding to MSMEs reached ₹31.3 lakh crore across 2.45 crore accounts, while agricultural and allied sector credit grew 17% YoY to ₹35,547 crore. Collateral-free loan limits under the Kisan Credit Card scheme were also increased to ₹2 lakh, and co-lending for agri and MSMEs surged sevenfold to ₹11,497 crore. These figures indicate not just rising demand, but a growing ecosystem of financial solutions that agri businesses can leverage. Among them, a term loan for an agriculture business stands out as a powerful tool to scale operations. With partners like Agriwise, accessing the right funding at the right time has never been more attainable.

Unlocking Growth Through MSME Loans

A well-structured MSME loan for agribusiness can do more than just cover expenses. It can unlock growth opportunities, create jobs, and increase rural incomes. Unlike short-term working capital loans, term loans provide longer repayment periods and are ideal for funding capital-intensive projects.
Agri MSMEs can use these funds to modernize their operations, invest in post-harvest technologies, build cold storage facilities, or adopt digital tools that improve traceability and supply chain efficiency. For businesses engaged in export or contract farming, such funding helps meet compliance standards, packaging upgrades, and quality certifications.

The real value, however, lies in how efficiently the loan is structured and delivered—something that traditional banking systems often fall short on, especially in rural areas. That’s where Agriwise steps in.

Agriwise: Empowering Agripreneurs with MSME Loans

As a focused agri-fintech company, Agriwise is building a smarter, faster, and more accessible ecosystem for credit delivery. It offers tailored financing options to agri MSMEs by understanding the seasonality, risks, and unique cash flow patterns of agriculture-linked businesses.

From agriculture business loans to customized term loans for machinery, input finance, and supply chain enhancement, Agriwise has developed products that directly address the needs of rural enterprises. Their tech-driven underwriting process ensures faster turnaround times, reduced paperwork, and greater transparency.
Moreover, agripreneurs can tap into government schemes for agri MSME loans, such as the Agriculture Infrastructure Fund or the MUDRA Yojana, for advisory support, eligibility guidance, and application facilitation. This is especially valuable in areas where awareness of such schemes remains low.

Driving Rural MSME Development

India’s rural economy is rich with entrepreneurial potential. By expanding access to formal credit through term loans, companies like Agriwise are playing a significant role in rural MSME development. These loans are not only financing business growth but also improving livelihoods, enhancing food value chains, and promoting rural employment.
The availability of a loan for agri entrepreneurs at the right time enables businesses to prepare for harvest seasons, invest in warehousing, or hedge against price volatility. For instance, small rice mills or groundnut processors can scale up with minimal delays when empowered with timely funding.

The key to success lies in matching the right loan product to the specific stage and scale of the business. Agriwise’s data-led approach and deep sector understanding help ensure that the loan fits the business model, repayment capacity, and growth outlook.

Understanding Agri Loan Eligibility Criteria

If you’re exploring how to fund your agribusiness expansion, it’s essential to first understand the agri loan eligibility criteria. Typically, a business must be registered and engaged in agriculture or allied services, have a verifiable income stream, basic KYC documents, and a clean credit history. For secured loans, collateral like property or agricultural assets may be required.

Agriwise has streamlined this process to make it entrepreneur-friendly, even for first-time borrowers or small-scale operators. Whether you’re a dairy unit in Maharashtra, a cold storage facility in Punjab, or a millet processor in Karnataka, the right financial product is just a few steps away.

Strategic MSME Loan Usage: How to Grow Agri MSME with Credit

Knowing how to grow an agri MSME with a loan starts with smart planning. Map out your business goals—whether it’s expanding your processing line, entering a new market, or investing in sustainable practices. Choose a loan amount and tenure that aligns with your cash flow, and always factor in interest obligations and repayment timelines.
Used wisely, a term loan for agriculture business not only bridges financial gaps but also builds long-term resilience. It helps shift agri MSMEs from informal to formal systems, making them eligible for future credit, partnerships, and public-private initiatives.

Best Term MSME Loan Options for Farmers

While banks and NBFCs do offer generic business loans, what sets Agriwise apart is its sharp focus on agriculture. If you’re seeking the best term loan options for farmers, processors, or agri-distributors, Agriwise offers products that match ground realities. This includes seasonal repayment schedules, interest subvention guidance, and integration with agri-tech platforms.

With India pushing towards formalization of rural credit, digital inclusion, and food security, now is the time for an agri MSME loan for growth. Agriwise is leading this charge with purpose-driven finance for India’s agricultural entrepreneurs.

Conclusion

A loan for agri entrepreneurs is not just capital—it’s a catalyst for change. With Agriwise as a partner, agri MSMEs can access the resources they need to expand, innovate, and contribute meaningfully to India’s rural economy. Whether you’re planning your first investment or scaling your existing business, term loans offer a dependable path forward.

What are the future trends in Indian agribusiness & MSME finance?

June 11, 2025

As India marches toward becoming a $5 trillion economy, MSME finance and agribusiness continue to drive inclusive and sustainable growth. With nearly 63 million micro, small and medium enterprises (MSMEs) contributing around 30% to India’s GDP, and agriculture employing over 50% of the workforce, both sectors demand innovative, tech-led financial solutions.

Agricultural credit in India is projected to exceed ₹31.5 lakh crore in FY26, driven by increased formalisation of rural credit—signalling a shift toward more structured, data-backed, and accessible financial systems.
Let’s explore the key agribusiness trends and the evolving landscape of MSME credit solutions shaping India’s economic future.

1. Rise of Digital Lending Platforms

One of the most defining developments in MSME finance is the rapid growth of digital lending. Startups and NBFCs are using alternative credit scoring methods—such as transaction data, utility payments, and GST returns—to extend loans to borrowers who were traditionally excluded from the formal financial system.
This evolution is crucial as millions of businesses lack formal credit histories. Fintech for MSMEs has emerged as a lifeline, especially post-pandemic, offering fast, collateral-free access to capital—reducing dependency on unorganised lenders and improving financial inclusion across rural India.

2. Co-Lending Models: Banks + NBFCs = Wider Reach

To bridge the significant credit gap, co-lending partnerships between banks and NBFCs have gained momentum. Banks offer a lower cost of capital, while NBFCs provide last-mile reach. This hybrid approach is enabling faster and more effective disbursement of MSME loans in 2025, particularly to underserved areas.
In fact, NBFCs have become key contributors to MSME finance in India, outperforming banks in disbursement volumes in the last fiscal year. This collaboration also fosters tailored credit offerings, better suited to the real-time needs of small businesses and agri-entrepreneurs.

3. Government-Led MSME Finance Solutions

The government’s focus on MSMEs has intensified through schemes such as the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises). As of late 2024, CGTMSE had facilitated over ₹5.2 lakh crore in guarantees. The recent budget also announced the introduction of MSME credit cards, offering working capital limits of up to ₹10 lakh under automatic guarantee coverage.
These initiatives are expected to enhance the accessibility of MSME loans in 2025, especially for first-generation entrepreneurs, women-led enterprises, and rural agri-based MSMEs—boosting job creation and economic resilience.

4. Green Finance: A Sustainable Future for Agribusiness

As sustainability gains priority across industries, MSME finance is also adapting. Financial institutions are offering incentives for eco-friendly initiatives—such as solar-powered agri equipment, organic farming, and energy-efficient food processing units.
This alignment with ESG (Environmental, Social, and Governance) goals is a key future trend in agri finance, helping agribusinesses reduce carbon footprints and qualify for better financing terms. Dedicated schemes, such as RAMP and green funds, are expected to drive this transition forward in 2025 and beyond.

5. Embedded Finance and Supply Chain Digitisation

With more MSMEs and agri-enterprises going digital, embedded finance—offering financial services directly within non-financial platforms—is transforming the way loans and payments are accessed. Businesses using marketplaces, ERP systems, or mobile apps can now access MSME credit solutions without leaving their digital ecosystems.
Simultaneously, digital supply chain finance is growing, supporting vendors, distributors, and processors with faster payments, credit lines, and invoice discounting. This is a critical development for agribusinesses relying on seasonal liquidity and fluctuating input costs.

6. AI-Powered Lending & Risk Assessment

The integration of AI and analytics in credit evaluation is redefining MSME finance. By utilising satellite imagery, crop monitoring data, and transaction analytics, lenders can more accurately assess risks and process loans more efficiently. This is particularly impactful in agri-finance, where traditional underwriting methods often fall short.
This data-driven approach ensures that borrowers with viable but informal operations are not left out. It also boosts credit discipline and helps institutions maintain portfolio health while serving new-to-credit segments.

7. Supportive RBI Policies & Rate Cuts

In June 2025, the Reserve Bank of India reduced the repo rate and cash reserve ratio, aiming to boost liquidity in the banking system. These changes are expected to make MSME loans in 2025 more affordable and accessible.
With MSMEs accounting for just 16% of formal credit but over a quarter of GDP, such measures are essential to balance risk and support expansion, especially in agri-linked businesses that face seasonal cash flow cycles.

The Road to MSME Finance: Empowering India’s Growth Engines

The future of MSME finance in India is poised for greater inclusion, efficiency, and resilience. Here’s a snapshot of the key agribusiness trends and financing shifts:

Digital lending to expand credit access and formalise small businesses
Co-lending models for deeper credit penetration in underserved markets
Green and ESG-aligned loans to support sustainable agribusiness growth
Embedded finance and supply chain tools for seamless MSME funding
AI-powered crop and enterprise finance for smarter credit risk evaluation
Policy push and credit guarantee schemes for risk mitigation and affordability

With evolving borrower needs and a supportive policy environment, these trends will drive the next wave of growth in both agribusiness and MSMEs.

Agriwise: Enabling the Future of Agri and MSME Finance

At Agriwise, we are proud to be part of India’s evolving MSME finance journey. Our offerings are designed to empower farmers, traders, and agri-based businesses with timely, transparent, and tech-driven credit access.

Through our warehouse receipt financing, we help farmers turn stored produce into instant working capital, eliminating distress sales and enabling smarter price realisation.
We combine field-level insights with data analytics and fintech tools to offer tailored credit assessments—redefining MSME credit solutions for the agri sector.
Our growing network of bank partnerships and co-lending arrangements makes MSME loans in 2025 more accessible and flexible.
Agriwise is also committed to sustainability, financial literacy, and empowering women and first-generation agri-entrepreneurs with responsible access to credit.

As the future of agri finance becomes smarter and more inclusive, Agriwise remains committed to enabling India’s farmers and MSMEs with the financial tools they need to succeed.

How to Apply for a Warehouse Receipt Loan at Agriwise: A Step-by-Step Guide

June 05, 2025

A warehouse receipt loan can be a lifeline for farmers, traders, and processors who need liquidity without having to sell their produce at suboptimal prices. Agriwise Finserv, a trusted name in agri-focused lending, offers this facility as part of its commodity finance portfolio, providing short-term working capital against the value of agricultural stock stored in approved warehouses.

India’s agricultural credit target has been set at ₹20 lakh crore for FY 2024–25, and the emphasis on inclusive rural finance is growing; understanding how to apply for a loan against warehouse receipt is more relevant than ever.
But how to apply for one? Here’s a step-by-step guide to navigating the process of applying for a warehouse receipt loan at Agriwise.

Step 1: Customer Walk-in or Lead Generation

The journey begins with the customer—whether a farmer, commodity trader, or processor—approaching Agriwise through its branch office, field location, or sales team. During this initial interaction, the Agriwise team shares key details about the agri loan product, including loan tenure, interest rates, eligibility, and repayment options. This conversation helps establish clarity and sets expectations, ensuring the applicant is well-informed before moving forward.

Step 2: Lead Creation in Loan Origination System (LOS)

Once the customer agrees to proceed, their details are digitally entered into Agriwise’s Loan Origination System (LOS). This step includes capturing:

KYC documents
Financial and business background
Details of the agricultural commodities to be pledged

Using LOS ensures a systematic and efficient onboarding process, reducing delays and paperwork.

Step 3: Credit Appraisal

Agriwise then conducts a thorough credit appraisal. A credit bureau check is performed to assess the borrower’s credit history, followed by an internal evaluation against Agriwise’s credit policy. Parameters like repayment behaviour, past borrowing records, and current eligibility are taken into account.

This step ensures that credit is extended responsibly, ensuring the security of both the borrower’s and lender’s interests.

Step 4: Case Sanction and Documentation

Once the application passes the credit check, the case is sanctioned. The borrower is then required to complete the documentation process, which includes signing the loan agreement and other pledge-related papers. Agriwise ensures that all documentation is transparent, giving the borrower complete visibility into the terms and conditions.

Step 5: Commodity Pledge and Warehouse Receipt Generation

The borrower deposits the agricultural commodities at an Agriwise-approved warehouse. A designated Collateral Manager (CM) checks the quality and quantity of the stock. Once satisfied, the CM issues a warehouse receipt in favour of Agriwise and forwards it to the credit operations team.

This warehouse receipt is the basis for the loan and reflects the value of the pledged commodity, making it the cornerstone of the loan against warehouse receipt process.

Step 6: Disbursement of Funds

Agriwise disburses funds to the borrower based on the value of the warehouse receipt. Generally, loans are offered up to 75% of the WR value, which is known as the Loan-to-Value (LTV) ratio.

This quick access to funds allows borrowers to manage their short-term working capital needs efficiently, be it to finance the next crop cycle, pay labour, or meet operational expenses—without the pressure to sell produce immediately.

Step 7: Repayment and Collection

Repayment terms are flexible:

For farmers: Both interest and principal are repaid at the end of the loan term.
For traders and processors: Interest is payable monthly, and the principal is repaid at maturity.

Importantly, Agriwise does not levy foreclosure or part release charges. This flexibility gives borrowers the freedom to repay as per their cash flow, especially in times of market volatility.

Why Warehouse Receipt Loans Matter?

With only about 30% of India’s small and marginal farmers having access to formal credit, innovative solutions like warehouse receipt loans are crucial. They allow borrowers to realise better value for their produce by avoiding distress sales, while also ensuring that the agricultural supply chain continues to function smoothly.

These loans are particularly powerful because they are asset-backed, low-risk for the lender, and timely for the borrower—fitting perfectly into the broader ecosystem of commodity finance.

Conclusion

Agriwise’s approach to warehouse receipt loans combines the assurance of physical collateral with a fast, transparent lending process. Whether you’re a farmer waiting for better prices or a trader looking for liquidity, a loan against warehouse receipt can offer the breathing space you need—without compromising the value of your produce.

By turning stored crops into working capital, Agriwise continues to play a key role in strengthening India’s rural economy, one loan at a time.