Krishik Sinchana Loan

With flexible repayment terms aligned with your harvesting cycles and agri-business needs, we make it easier for you to invest in vital irrigation infrastructure. With flexible repayment terms aligned with your harvesting cycles and agri-business needs, we make it easier for you to invest in vital irrigation infrastructure. By minimizing your down payment to just 15% and offering competitive interest rates, the Krishik Sinchana supports you in transforming your agricultural endeavors into fruitful and sustainable operations. Whether you're an individual, firm, or trust engaged in agriculture, our scheme provides the support you need to optimize water management, increase crop yield, and improve the sustainability of your farming practices Read more

Why this loan is for you

Supporting your agricultural needs with easy solutions

EBLR-aligned rates with repayment terms synced with crop cycles

Guidance and assistance throughout your experience with us

Specially designed loans for your irrigation needs and modern agri-business

Down payment amount

A margin of up to 15% of the project cost is required as your contribution.

Loan repayment

Make your term loan payments in yearly installments that are in sync with your crop cycles and harvesting season.

Interest rates

Interest rates align with External Benchmark Lending Rate (EBLR) guidelines, ensuring that your payments are affordable and reflective of current market conditions

Loan amount

We finance up to 85% of the loan amount for a range of irrigation projects. With a maximum amount of ₹1 crore, we also guide you in selecting and financing suitable irrigation technologies.

Overdraft facility

We also offer overdraft facility for up to 75% of recurring costs for up to one year.

Hypothecation of assets

Hypothecation of crops and purchased assets for loan amounts up to ₹1.6 lakh.

Property collateral

We require residential, commercial or agricultural property as a security along with hypothecation for loan amounts above ₹1.6 lakh.

Make matters simple and straightforward

A smart calculator for smart spending and savings

Emi Calculator

Loan amount
25000 1000000
Rate of interest
2% 18%
Loan tenure
1 Months 60 Months

You will pay

₹13,800/Months

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Eligibility criteria

Individuals and small-scale farmers
  • Individuals and farmers engaged in agriculture with a focus on irrigation
  • Sound farming practices and a project plan is mandatory
  • Valid documents proving identity and address
  • Companies, trusts and self help groups and HUFs legally recognized in agricultural activities
  • Valid identification and proof of legitimate agricultural entity

Documents required

  • CIBIL/CRIF and KYC documents
  • Plan and estimation (if applicable)
  • RTCS
  • CERSAI (if applicable)
  • EC and RTC
  • Income tax returns, income proof
  • Legal document for property
  • Project report / Quotation
  • Insurance copy and stock report (if applicable)

As easy as 1,2,3...

Apply for a Krishik Sinchana Loan in 3 simple steps

Step 1

Visit your nearest branch

Go to your nearest Karnataka Bank branch

Step 2

Start with your basic details

Provide your basic details and keep your documents handy

Step 3

We’ll take care of the rest

Our branch officials will notify you when your loan is sanctioned

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Got questions? We’ve got answers.

What specific irrigation projects does the Krishik Sinchana Loan cover?

This loan is designed to finance a wide range of irrigation-related projects, including the installation of new irrigation systems, upgrading existing systems, and purchasing irrigation equipment like sprinklers and drip irrigation systems. Whether it's a small-scale farm or a larger agricultural operation, this scheme provides the necessary financial support to enhance water efficiency and crop yield.

The interest rate for the Krishik Sinchana Loan is aligned with the External Benchmark Lending Rate (EBLR), ensuring it remains competitive and affordable. This means the interest rate adjusts with market conditions, offering you the advantage of lower rates during favorable economic periods. Such a structure helps in reducing the overall cost of your loan over time, making it a financially viable option for your irrigation needs.

The 15% down payment is the portion of the equipment or project cost that you need to fund. This requirement ensures that you have a personal stake in the project, enhancing your commitment to its success. It also reduces the loan amount, making repayments more manageable. For a ₹1,00,000 project, for example, you would need to contribute ₹15,000 from your resources.

Hypothecation is a form of security where you pledge an asset as collateral for a loan while retaining possession and control of it. Unlike mortgage or pledge, where the lender may hold the asset, hypothecation allows you to use and benefit from the asset while it serves as security for the loan. This is particularly useful in agricultural loans, where assets like crops or equipment are essential for ongoing business operations.

Yes, it is not just for new irrigation projects but also for the enhancement or expansion of existing irrigation infrastructures. This can include modernizing outdated systems, expanding the area under irrigation, or incorporating new technologies for better water management.

The scheme offers repayment terms that are closely aligned with agricultural cycles, recognizing the seasonal nature of farming income. Yearly installments can be scheduled to coincide with your crop's harvesting and marketing periods, providing flexibility and ease in managing cash flows. This approach ensures that repayments are due when your farm is most likely to have generated income from the produce.

Karnataka Bank understands that agriculture-based businesses can face unpredictable challenges. If you encounter difficulties in repaying your loan, we encourage you to communicate with us as early as possible. Our team will work with you to understand your situation and explore possible solutions, which may include restructuring your loan, adjusting repayment schedules, or providing guidance on managing your financial challenges. We are committed to supporting our customers through their difficulties and finding mutually beneficial solutions.

Apart from the interest, we charge a standard processing fees or charges as applicable for loan processing and disbursement.

The disbursement timeline can vary depending on the documentation, project evaluation, and approval processes. However, Karnataka Bank strives to ensure a swift and efficient process, recognizing the time-sensitive nature of agricultural projects.

In the context of Karnataka Bank's loans, EBLR or External Benchmark Lending Rate is a crucial reference rate. It's essentially the standard against which the interest rates of loans are gauged and adjusted. This rate is determined by external market factors and serves as a transparent and dynamic benchmark. By tying loan interest rates to the EBLR, we ensure that loan pricing is fair, responsive to market conditions, and in line with regulatory guidelines, providing a clear and consistent basis for borrowers to understand how their loan interest rates are set.

Promoting efficient irrigation practices with the Krishik Sinchana Loan

With the Krishik Sinchana Loan, we offer an agriculture loan for irrigation, supporting the implementation of sustainable and efficient water management systems like drip irrigation. This scheme is designed to help farmers adopt modern irrigation methods, reducing water waste and improving crop yields. 

 

Interest rates on agri-business loans are typically structured to support the agricultural community, often being more favorable than standard commercial loans. Understanding these rates is crucial when you start your application process, as they directly affect repayment terms and the overall cost of the loan.

Do ensure you have a clear plan for the utilization and repayment of the loan. Keep all necessary documents ready to streamline the online application process. Don't overlook government subsidies or special programs that may be available for agri-business loans. Regularly monitor and manage your loan to maintain financial health.