What is an Agricultural Income Based Overdraft?
This is an overdraft facility designed for individuals and businesses whose income is substantially derived from agricultural activities or agriculture-linked land holdings. The limit is sanctioned based on assessed agricultural income and/or the value of agricultural land held as security, giving farmers, agri-businesses and land-owning families flexible access to funds for both agricultural and allied personal/business needs.
This facility supports crop-related expenses, agri-equipment purchase, allied activities like dairy/poultry, as well as personal needs, without the borrower having to apply for a fresh loan each season.
How Agricultural Income Based Overdraft Benefits You
- Flexible, revolving access to funds against agricultural income/land
- Interest charged only on the amount utilized
- Supports both farming needs and personal/family requirements
- Renewable facility aligned with agricultural income cycles
- Simple documentation based on land records and income assessment
Basic Eligibility for Agricultural Income Based Overdraft
- Ownership of agricultural land with clear title
- Demonstrable agricultural or allied income
- Satisfactory banking track record
- Land situated in an area acceptable to the lender for valuation
- Age and repayment capacity as per lender norms
Loan Details
| Parameter | Details |
|---|---|
| Rate of Interest | 9% to 14% per annum |
| Professional Segment | 8% to 12% per annum |
| Minimum & Maximum Loan Amount | ₹2 lakhs to ₹5 crores (based on land value/income) |
| Minimum Business Vintage | Not mandatory; land ownership and income proof required |
| Age Limit | Min 21 years – Max 70 years |
Documents Generally Required
- KYC documents
- Land records / ownership documents (7/12 extract, khasra-khatauni, etc.)
- Income proof / agricultural income assessment
- Bank statements (last 12 months)