Recognising the importance of the agricultural sector in the development of the nation, Federal Bank has created an elaborate institutional framework to meet the credit requirements of the sector. Agricultural lending forms an integral part of the priority sector lending of the Bank. Bank offers loan facitlites for sectors like plantation, horticulture, land development, irrigation, farm mechanisation, construction of rural godowns, cold storages and poly house/ greenhouse, precision farming, floriculture, animal husbandry, poultry, fishery among others. This service is extended through rural, semi-urban and urban branches of the Bank.
AGRI FARM CREDIT LOANS
Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs) i.e. groups of individual farmers, provided banks maintain disaggregated data of such loans and Proprietorship firms of farmers, directly engaged in Agriculture and Allied Activities, viz. dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture. Loans sanctioned to Corporate farmers, Farmer Producer Organisations (FPOs)/(FPC) Companies of Individual Farmers, Partnership firms and Co-operatives of farmers engaged in Agriculture and Allied Activities are also eligible under farm credit subject to specific conditions.
AGRI INFRASTRUCTURE LOANS
Loans provided for construction of storage facilities, soil conservation and watershed development, Plant tissue culture and Agri-biotechnology, seed production, production of bio-pesticides, bio-fertilizer, and vermi composting are eligible to be classified under Agri infrastructure. Loans for construction of oil extraction/ processing units for production of bio-fuels, their storage and distribution infrastructure along with loans to entrepreneurs for setting up Compressed Bio Gas (CBG) plants are also eligible as per revised RBI guidelines.
AGRI ANCILLARY SERVICES
Loans to co-operative societies of farmers for purchase of the produce of members , Loans for setting up of Agri-clinics and Agri-business centres, Loans to Start-ups that are engaged in agriculture and allied services, Loans to Custom Service Units who undertake farm work for farmers on contract basis are eligible under this category. Loans provided for Food and Agro-processing up to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system is also eligible under Ancillary services. Loans sanctioned by banks to MFIs and NBFCs complying specific conditions stipulated by RBI for on-lending to agriculture sector will also qualify under this head. In addition to these Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-sized Adivasi Multi-Purpose Societies (LAMPS) for on-lending to agriculture will qualify under ancillary category for priority classification.
Want a new FASTag?
Apply with ease through FedMobile or FASTag portal.
National Level Financial Literacy Quiz – 2024
SEBI in association with NISM, is organising a National Level Financial Literacy Quiz – 2024. The undergraduate and post graduate students of recognized colleges, universities, educational institutions in India are eligible to participate in the Quiz Competition.
Discover a whole new world of possibilities with digital personal loans from Federal Bank.
With Federal Bank digital personal loans, you can get the funds you need anywhere and anytime with no manual documentation.
Apply for a Lifetime Free Credit Card today!
Cherish your happy moments with Federal Bank Credit Cards which offers a wide range of features such as lowest dynamic APR, 3-2-1 rewards, complimentary Lounge Access, Complimentary Swiggy vouchers, Amazon Pay e-Voucher as welcome gift and much more without paying membership fees!