Tag Archives: agriwise finance

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!

government schemes for farmers

  1. 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.
  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

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.

msme loan

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.