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Agri finance options in India: Which one suits your agribusiness?

September 17, 2025

India’s agriculture is evolving rapidly, shaped by inflationary pressures, climate challenges, and shifting policy priorities. Choosing the right finance options for your farm or agribusiness is now more crucial than ever. This article highlights the leading agri finance solutions—what they offer, who benefits most, and how Agriwise helps you identify and access the right fit for your needs.

Why does good agriculture finance matter?

Agriculture contributes about 16% of India’s GDP (as of FY 2024-25) and supports nearly 46% of the population. Yet one of the challenges remains access to sufficiently tailored agriculture credit or agriculture loan schemes, especially for smallholders. If you choose wrong, cost of capital drains profit; if you choose right, it can boost productivity, reduce risk, and raise incomes.

Key finance options available in India

Here are the main types of finance options you can consider, depending on your agribusiness size, purpose, and risk profile.

Other supportive elements: subsidy, working capital, policies

Agricultural subsidy schemes like input subsidy, fertilizer subsidy, electricity subsidy for pump sets etc still form part of farm finance. These reduce the effective cost of agriculture finance.
Agricultural working capital loans cover ongoing costs; many agriculture loan schemes provide for working capital (via KCC, crop loans, or MSME lines).
Government schemes like Pradhan Mantri Fasal Bima Yojana (PMFBY) provide risk coverage for crops. Budget 2025-26 allocated ₹69,515.71 crore from 2021-22 to 2025-26 for PMFBY & Restructured Weather Based Crop Insurance Scheme.

Choosing the right finance option

To decide among finance options, consider:

Your financial need: Are you funding inputs for one crop cycle (short-term), investing in infrastructure, or managing working capital for processing?
Your business entity & scale: Small/marginal farmers vs Farmer Producer Organisations (FPOs) vs agribusiness/processing firms.
Collateral and risk: Do you have collateral (Commodity, fixed assets), or only produce receivables? What risk are you taking (price, weather, market)?
Cost of finance: Interest rate, fees, moratorium, repayment schedule. Subsidised rates (crop loan, KCC) vs more commercial rates (invoice discounting, MSME).
Support & guidance: Navigating documentation, schemes, subsidies etc.

Agriwise offerings that help

At Agriwise, we offer services/products aligned to these finance-options to ease your journey:

Tailored agribusiness loan advisory: We help assess which agriculture loan or agribusiness loan suits your scale and purpose.
Assistance in obtaining crop loan: guiding documentation, eligibility, repayment options.
Facilitation of warehouse receipt finance: identifying licensed warehouses, helping you pledge produce to get credit.
Support for MSME loan applications and invoice discounting arrangements for agribusiness clients.
Linking farms with solar financing and subsidy programmes to reduce operational cost and enhance sustainability.

Summary: Which finance options suit your agribusiness?

If you are a small or marginal farmer needing funds for one crop cycle → crop loans / KCC / farmer loan with subvention or subsidy, low cost.
If you are selling produce post-harvest and need liquidity → warehouse receipt finance, avoid fire-sale prices.
If you’re an agribusiness/processor needing working capital for receivables or raw material input → invoice discounting / commodity finance / MSME loan.
If you’re building storage, cold chain or value-addition infrastructure → agriculture infrastructure loan under AIF or similar.
If you want to reduce recurring input cost / energy cost → solar financing + subsidy.

Conclusion

There is no one-size-fits-all when it comes to agriculture finance. The best finance options depend on your operations, cash flow, scale and risk appetite. With the right mix of agriculture credit, helpful agricultural subsidy support, and working with providers who understand the sector, your agribusiness can grow sustainably.
Agriwise is here to help you pick, apply and manage the right mix of agriculture loan, agribusiness loan, working capital, and funding solutions so your farm not only survives, but thrives.

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.

How to get an LAP loan (Loan Against Property) for your agribusiness?

September 03, 2025

For agribusinesses seeking capital without compromising operational liquidity, a loan against property (LAP loan) offers a compelling solution. An agri LAP loan leverages your existing property—be it farmland, warehouse, or residential premises—to raise funds, typically at lower interest rates than unsecured credit. For those in the agriculture sector, LAP for farmers/agribusiness bridges the gap between capital needs and formal credit access, especially in the face of rising input/raw material costs. At Agriwise Finserv, we specialize in customized LAP loans for agribusinesses, offering higher loan amounts, longer tenures, and simplified processes tailored to the unique cycles of agriculture.

Current landscape & why an agri LAP loan makes sense?

In 2025, the average agriculture loan interest rate in India stands at approximately 8.2% per annum—a decline from around 8.7% in 2023—thanks to interest subvention schemes that lower effective rates to as little as 4% for prompt repayment. These favourable terms make securing an LAP loan especially attractive for agribusinesses looking for long-term funding.

On the micro-lending end, the cooperative government in Maharashtra has capped private moneylenders’ interest rates at 9% p.a. for secured agricultural loans, reinforcing the advantage of formal borrowing routes such as agri LAP loans. Moreover, MSME loan portfolios remained robust in FY25, with portfolios at risk (PAR) in the 31–90 day bucket at just 1.7%, highlighting the relative safety and reliability of structured, collateral-backed financing such as LAP.

Step-by-Step Guide: How to secure an LAP loan for your agribusiness

1. Assess your eligibility and property value

The first step is to evaluate whether you qualify for an LAP loan. Lenders usually consider the type of property, its current market value, and your repayment capacity. The loan amount is generally a percentage of the property’s value, often between 60–70%. Farmers and agribusinesses should begin by gathering valuation details of their property such as residential, commercial or industrial.

2. Understand the terms of the loan

Before applying, understand the basics: expected loan amount, interest rates, tenure, and repayment flexibility. Agri LAP loans typically come with longer repayment tenures (up to 15 years), making them suitable for businesses with seasonal income cycles. Knowing the terms upfront ensures you borrow wisely and avoid unnecessary strain later.

3. Prepare the required documentation

Documentation is crucial for approval. Generally required papers include proof of property ownership, identity proof, financial statements, and in some cases, details of the agribusiness operations. Preparing accurate documents in advance reduces processing delays and increases the chances of a smooth approval process.

4. Apply through a trusted channel

Once prepared, you can submit your application either offline or through digital platforms. This is where Agriwise adds value—its technology-driven platform guides farmers and agribusiness owners through the application process, ensuring eligibility checks, quick submission, and hassle-free communication with lenders. By doing so, Agriwise helps applicants save time and avoid common errors.

5. Plan the utilisation of the loan

After approval, it is important to use the loan against property strategically. Funds can be allocated toward expanding storage facilities, purchasing farm equipment, or maintaining steady cash flow during crop cycles. Agriwise also provides advisory support to help borrowers align the loan with their business goals and repayment capacity.

Advantages of choosing an agri LAP loan through Agriwise

Lower interest costs compared to unsecured or informal credit
Longer tenures, up to 15 years, mitigating EMI pressures
Higher LTV, preserving capital for other needs
Formal, regulated lending environment, reducing risk of predatory terms
Less documentation & BT with top-up loan option available

This makes an LAP loan a strategic instrument for building resilience in your agribusiness.

Conclusion

Securing an LAP loan for your agribusiness is not just about unlocking capital—it’s about choosing a sustainable, cost-effective financing structure that aligns with long-term productivity goals. With competitive rates of interest and supportive platforms like Agriwise streamlining access, now is an ideal time to explore agri LAP loans.

Let Agriwise help you navigate the journey—from eligibility and documentation to approval and strategic utilization. When structured right, a loan against property can be the growth catalyst your agribusiness needs—secure, efficient, and attuned to the pulse of Indian agriculture.

Disclaimer

Invoice discounting for MSMEs: How to unlock cash flow quickly?

August 21, 2025

According to The Economic Times, India’s Micro, Small, and Medium Enterprises (MSMEs) continue to be the backbone of the national economy, contributing roughly 30% to the country’s GDP while employing over 110 million people across diverse industries. Yet, despite this massive footprint, MSMEs continue to face their biggest hurdle: timely access to working capital.

Delayed payments remain one of the most pressing challenges. Receivable cycles for MSMEs often stretch well beyond 60–90 days, tying up critical funds in unpaid invoices. This creates liquidity bottlenecks that slow down operations, force small businesses to rely on costly informal credit, and in many cases, stall growth altogether. The problem is particularly acute in agri-linked MSMEs, where seasonal demands, procurement cycles, and buyer concentration magnify the stress.

Against this backdrop, invoice discounting has emerged as a practical and increasingly popular financing solution. By allowing MSMEs to unlock cash against unpaid invoices, it provides immediate liquidity without the need for heavy collateral. With the rise of digital lending platforms, the process has become faster, more transparent, and more accessible than ever before. For businesses struggling with delayed receivables but eager to capitalize on new opportunities, invoice discounting can be the difference between stagnation and sustainable growth.

What is invoice discounting?

Invoice discounting is a short-term borrowing option that enables MSMEs to raise funds against their outstanding invoices. Instead of waiting for a buyer to settle payments after 60 or 90 days, the business can sell the invoice to a financier and receive a majority of the invoice value upfront. Once the buyer pays the invoice, the financier deducts a small fee and releases the balance.

Unlike traditional bank loans, invoice discounting is linked directly to sales and receivables. This means the funding grows in proportion to business turnover and does not always require physical collateral. It is especially suited for MSMEs that supply to large, creditworthy buyers but struggle with elongated receivable cycles.

Why does it matter for MSMEs in 2025?

The importance of invoice discounting has only grown in recent years. Financiers have shown growing appetite as invoice-backed lending is considered lower-risk when backed by reputed anchors.

For MSMEs, this means greater access to affordable working capital, faster turnaround times, and reduced reliance on informal lenders. In a market where liquidity crunches are often the difference between capturing an opportunity and losing it, invoice discounting ensures that businesses can keep production cycles running smoothly, pay suppliers on time, and meet seasonal demands.

What are the benefits of invoice discounting?

Faster access to cash flow: Convert unpaid invoices into ready funds in days.
No heavy collateral needed: Limits are based on receivables and anchor strength rather than property or machinery.
Competitive pricing: With multiple financiers bidding on credit lending platforms, MSMEs can often secure better rates.
Improved discipline: Digital trails encourage timely approvals, clean invoicing, and healthier buyer-supplier relationships.
Scalability: As your sales and invoices grow, so does the financing capacity.

Risks and considerations

While invoice discounting offers multiple benefits, MSMEs should also evaluate:

Anchor reliability: The model depends heavily on the buyer’s ability and willingness to pay on time.
Documentation quality: Errors in e-invoicing, GST filings, or purchase orders can delay funding.
Cost-benefit analysis: Discounting carries a fee, so businesses must weigh it against the returns gained from faster inventory rotation or early-payment discounts.
Platform choice: Several financial institutions & platforms ensure transparency and regulatory oversight, while NBFCs and fintechs may offer speed and flexibility.

How Agriwise supports MSMEs?

Agriwise, as a specialised NBFC, understands the unique challenges of agri-linked MSMEs and allied sectors. Our services include invoice discounting and vendor financing, enabling businesses to access cash tied up in receivables. Beyond this, we provide Structured Trade Finance (STF) solutions through StarAgri that cover not just warehoused stock but also in-transit and imported goods. Additionally, we offer Loan Against Property (LAP) and equipment financing to meet broader credit needs. By combining deep sector expertise with data-driven assessments of anchors and cash-flow cycles, Agriwise ensures that MSMEs can unlock liquidity quickly, responsibly, and at competitive costs—empowering them to grow without over-reliance on informal credit sources.

Making invoice discounting work for you

To effectively leverage invoice discounting, MSMEs should:

Map receivables: Identify invoices linked to strong anchors with consistent payment track records.
Digitize processes: Maintain clean e-invoices, GST returns, and supporting documents.
Select the right partner: Choose NBFCs like Agriwise for transparent & tailored solutions.
Assess ROI: Compare the cost of discounting against benefits like faster raw material procurement or meeting seasonal demand.
Scale gradually: Start with select anchors, then expand financing to multiple buyers to balance.

Conclusion

LIn 2025, as MSMEs continue to drive India’s growth story, timely access to working capital remains their most critical requirement. Invoice discounting has emerged as one of the most efficient ways to address this challenge—bridging the gap between raising invoices and receiving payments. With regulatory backing, rising digital adoption, and growing financier participation, the ecosystem is more robust than ever before.

For agri-linked businesses in particular, where cycles are seasonal and liquidity is often under strain, invoice discounting can transform financial stability. Backed by experienced partners like Agriwise, MSMEs can turn receivables into growth capital—unlocking opportunities, sustaining momentum, and building resilience for the future.

Disclaimer

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.

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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.

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.

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.