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Thread: Loans to buy agriculture land

  1. #1

    Join Date
    Sep 2008
    Posts
    5

    Default Loans to buy agriculture land

    Hello All,

    I am planning to buy a land (10acres) near Mandya, Karnataka. I need loan to purchase the land. I tried in all National banks, they won't finance itseems for purchasing of land.

    Is there any public sector/private sector banks who can help in this regards?

    Is there any other way? Please help

    Regards,

    KML

  2. #2

    Join Date
    Aug 2005
    Posts
    118

    Default

    Dear KML,

    Banks have a scheme for land purchase, but that is for small and marginal farmers and landless labourers only.

    _________________
    himangshu

  3. #3

    Join Date
    Dec 2008
    Posts
    1

    Default

    Hi himangshu
    Can you please provide some pointer on the definition of small and marginal farmers and landless labourers ?
    And also the list of banks who provide loans for agri land purchase.

    Thanks in advance
    Sumit

  4. #4
    Premium Member anil1956's Avatar
    Join Date
    Dec 2007
    Posts
    597

    Default

    Dear Friend,
    Land near Mandya cost anywhere between 2.5 lacs to 5 lacs per acre, so it is 25 lacs to 50 lacs investment on land for 10 acres. it will be almost impossible to make a viable project in short run.However, the investment per se is OK since the land value appreciate very well. If you can purchase land on your own banks can fund for all developments. you needs to conceptualise a project idea and get a project report prepared to get bank loan. NHB do fund some portion of the land value as subsidy but NHB is highly undependable.

    Regarding what is small/margin farmer a question asked by some body:- 5 acres/2.5 acres of dry land or half of it as irrigated land respectively make the small/marginal farmer. However, there is a different definition for financing land by banks which is much higher and it will be around 12 acres for Mandya district if you are purchasing dry land. But generally it is permitted for existing farmers near their existing farm.if you purchase say 2 acres on your own , more can be financed with a good project report provided you can prove your repayment capacity otherwise also.

    anil patil
    anil1956@hotmail.com
    09448028970Bangalore

    Quote Originally Posted by kamalb205 View Post
    Hello All,

    I am planning to buy a land (10acres) near Mandya, Karnataka. I need loan to purchase the land. I tried in all National banks, they won't finance itseems for purchasing of land.

    Is there any public sector/private sector banks who can help in this regards?

    Is there any other way? Please help

    Regards,

    KML

  5. #5

    Join Date
    Dec 2008
    Posts
    16

    Default

    Hi All,

    Is there no way to get a loan for purchasing a agriculture loan? i a looking for loan around 25 lacs and i am paying IT for past 3 years with annual income of 10 lacs.

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