Agriculture Loan From Cooperative Society In India

Imagine a world where farmers can easily get loans without filling out much paperwork or waiting a long time. That world does exist now, thanks to cooperative groups in India. Thanks to these smart businesses that use technology, farmers can now easily apply for loans for farming online with just a few clicks.

Agriculture Loan From Cooperative Society In India

From small-scale subsistence farming to large-scale business operations, cooperative societies know that farmers need timely financial help and work hard to make sure that farmers can get the money they need when they need it. Come with us as we look at how this digital shift is changing how India lends money to farmers.

Agriculture Loan From Cooperative Society

Agriculture loans from cooperative societies can be a vital financial resource for farmers in India. Under the guidance of the National Bank for Agriculture and Rural Development (NABARD), cooperative banks offer various crop loan schemes to support farmers in meeting their agricultural needs. Here are some details about agriculture loans from cooperative societies:

1. National Bank for Agriculture and Rural Development (NABARD):

  • NABARD is crucial in providing refinancing support to cooperative banks across India, enabling them to offer agriculture loans to farmers.

2. Bihar State Cooperative Bank Limited:

  • Bihar State Cooperative Bank offers crop loans to farmers in Bihar. These loans are designed to meet various agricultural expenses, including crop cultivation and post-harvest expenses.

3. Haryana State Cooperative Apex Bank Limited:

  • Haryana State Cooperative Apex Bank provides crop loans to farmers in Haryana. These loans help farmers finance their agricultural activities, such as purchasing seeds, fertilisers, and equipment.

4. National Federation of State Cooperative Banks Limited:

  • This federation represents state cooperative banks across India and works to strengthen the cooperative banking sector. It may offer various agriculture loan schemes through its member banks.

5. Odisha State Cooperative Bank Limited:

  • Odisha State Cooperative Bank extends crop loans to farmers in Odisha. These loans support farmers in meeting their seasonal agricultural needs.

6. Repatriates Cooperative Finance and Development Bank Limited:

  • This cooperative bank may offer farmers and agricultural workers financial assistance, including crop loans and other agricultural credit facilities.

7. Punjab State Cooperative Agriculture Development Bank Limited:

  • Punjab State Cooperative Agriculture Development Bank focuses on providing financial support to farmers in Punjab. It offers crop loans to help farmers with crop production and related expenses.

8. Andhra Pradesh State Cooperative Bank Limited:

  • Andhra Pradesh State Cooperative Bank provides crop loans and other agricultural credit facilities to farmers in Andhra Pradesh, helping them meet their farming requirements.

These crop loan schemes’ specific terms and conditions, including interest rates, repayment periods, and eligibility criteria, may vary among cooperative banks. Farmers interested in availing of crop loans should contact their nearest cooperative bank branch for detailed information and to apply for the loan.

It’s important to note that cooperative banks often work closely with NABARD to ensure that farmers have access to timely and affordable credit for their agricultural activities.

Additionally, these institutions may offer various loan repayment options tailored to the seasonal nature of farming. Farmers are advised to stay updated on the latest loan schemes and government policies related to agriculture loans.

Agriculture Loan From Cooperative Society Apply Online

Applying for an agriculture loan from a cooperative society typically involves visiting the cooperative society’s branch in person and completing the necessary paperwork.

Online application processes for agriculture loans from cooperative societies were less common than those offered by commercial banks. However, this may have changed since then, and some cooperative societies may now offer online application facilities.

If you’re interested in applying for an agriculture loan from a cooperative society and prefer an online application process, you can follow these general steps:

  • Visit the Cooperative Society’s Website: Start by visiting the official website of the cooperative society from which you intend to apply for the loan. Look for any online application or loan-related sections on their website.
  • Read Loan Information: Cooperative societies usually provide details about their loan products, including eligibility criteria, interest rates, and documentation requirements on their websites. Review this information to ensure you meet the criteria.
  • Online Application Form: If the cooperative society offers an online application, an application form should be available on its website. Please select the appropriate hyperlink to view the form.
  • Fill Out the Application: Complete the online application form with accurate information. You’ll typically be asked for personal details about your agricultural activities, the loan amount required, and other relevant information.
  • Upload Documents: Scan or take clear photos of the required documents, such as land records, income certificates, and identity proof. Please ensure you upload the specified documents following the guidelines outlined in the online application form.
  • Submit the Application: Review the information you’ve entered and the documents you’ve uploaded. Once you are sure everything is correct, submit the online application.
  • Application Confirmation: You may receive an acknowledgement or confirmation message after applying. This may include a reference number or receipt you should keep for future reference.
  • Visit the Branch: In many cases, even if you apply online, you may still need to visit the cooperative society’s branch in person to complete the loan application process. This visit may require document verification, discussions with loan officers, and final approval.
  • Loan Processing: The cooperative society will review your application, assess your eligibility, and verify the documents. They will also consider factors such as your creditworthiness and the purpose of the loan.
  • Loan Approval: If your loan application is approved, the cooperative society will provide you with the details of the approved loan, including the loan amount, interest rate, and repayment schedule.

Please note that the specific process and requirements for applying for an agriculture loan from a cooperative society can vary from one society to another.

It’s essential to check the cooperative society’s official website or contact their branch directly for the most up-to-date and accurate information on their loan application process, including any online application options that may now be available.

Agriculture Loan From Cooperative Society Calculator

Calculating the details of an agriculture loan from a cooperative society, including the loan amount, interest rate, and repayment schedule, typically involves several variables. Here, I’ll provide an example of calculating these details manually based on common parameters. Please note that the actual loan terms and calculations can vary based on the policies of the specific cooperative society.

Example: Calculating an Agriculture Loan

  • Suppose you are a farmer seeking an agriculture loan from a cooperative society. Let’s assume the following parameters:
  • Loan Purpose: Crop cultivation.
  • Loan Amount Needed: ₹5,00,000 (5 lakhs).
  • Interest Rate: 8% per annum.
  • Loan Tenure: 1 year.
  • Step 1: Interest Calculation
  • The first step is calculating the interest you’ll pay on the loan. The formula for calculating simple interest is:
  • Simple Interest (SI) = (Principal Amount × Rate of Interest × Time) / 100
  • In this example:
  • Principal Amount (P) = ₹5,00,000
  • Rate of Interest (R) = 8% per annum (0.08 as a decimal)
  • Time (T) = 1 year

Now, plug these values into the formula:

SI = (5,00,000 × 0.08 × 1) / 100 = ₹40,000

So, the interest on the loan for one year is ₹40,000.

Step 2: Total Repayment Amount

  • To find the total repayment amount, add the interest to the Principal:
  • Total Repayment Amount = Principal + Interest
  • Total Repayment Amount = ₹5,00,000 + ₹40,000 = ₹5,40,000
  • So, you would need to repay ₹5,40,000 to the cooperative society over one year.

Step 3: Monthly EMI Calculation (Optional)

You can calculate the Equated Monthly Installment (EMI) if your cooperative society requires monthly payments. The formula for calculating EMI is:

  • EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]


  • P = Loan Principal (₹5,00,000)
  • R = Monthly Interest Rate (Annual Rate / 12 months) = 8% / 12 = 0.67% or 0.0067 as a decimal
  • N = Loan Tenure in months (1 year = 12 months)

Now, calculate the EMI:

  • EMI = [5,00,000 × 0.0067 × (1+0.0067)^12] / [(1+0.0067)^12 – 1]
  • Using a calculator, you’ll find that the EMI is approximately ₹43,873.

So, if the cooperative society requires monthly payments, you must pay approximately ₹43,873 per month for one year to repay the loan.

Please note that this is a simplified example, and the actual loan terms, interest calculation methods, and repayment schedules may vary depending on the cooperative society’s policies. It’s crucial to consult with the cooperative society or use their specific loan calculator (if available) to get accurate details for your loan application.

Cooperative Bank Agricultural Loan Interest Rates

The interest rates for agricultural loans from cooperative banks can vary based on several factors, including the type of bank (State Cooperative Banks, Regional Rural Banks, District Central Cooperative Banks, or Commercial Banks), the purpose of the loan, and the policies of the specific bank or cooperative society.

Here are the interest rate details according to NABARD (National Bank for Agriculture and Rural Development) for different types of banks and their financing of crop loans:

  • State Cooperative Banks for financing crop loans: The interest rate is 4.5%.
  • RRBs (Regional Rural Banks) for financing crop loans: The interest rate is 4.5%.
  • DCCBs (District Central Cooperative Banks) directly financing crop loans: The interest rate is 4.5%.
  • Commercial Banks/RRBs regarding their finance to PACS (Primary Agricultural Credit Societies) towards crop loans: The interest rate is 4.5%.

Please note that these rates are subject to change and may vary based on the prevailing economic conditions, government policies, and specific arrangements between cooperative banks and borrowers. It’s essential to check with the respective bank or cooperative society for the most up-to-date interest rates and loan terms for agricultural loans.

Agriculture Loan From Cooperative Society In Tamilnadu

The cooperative banking system in Tamil Nadu plays a crucial role in providing financial services and credit facilities to both rural and urban populations. This system is deeply rooted in the Indian financial landscape and has a history of nearly 100 years. Here is a detailed overview of the agricultural loan system and cooperative credit structure in Tamil Nadu:

Cooperative Banks in Tamil Nadu:

Cooperative banks in Tamil Nadu are registered under the Cooperative Societies Act and are regulated by the Reserve Bank of India (RBI). The regulatory framework governing them consists of the Banking Regulations Act of 1949 and the Banking Laws (Cooperative Societies) Act of 1965. 

 These banks are an integral part of the Indian financial system, serving a critical role in providing financial services to various sectors of the economy.

Cooperative Credit Structure:

The cooperative credit structure in Tamil Nadu consists of three main components:

(A) Short Term Credit Structure:

The framework mentioned above consists of the Tamil Nadu State Apex Cooperative Bank operating at the state level, Central Cooperative Banks functioning at the district level, and Primary Agricultural Cooperative Banks operating at the village level.  It is a three-tier system designed to provide short-term and medium-term credit to farmers and other stakeholders.

Tamil Nadu State Apex Cooperative Bank Ltd (TNSCB), Chennai: The Apex Cooperative Bank is a federation of District Central Cooperative Banks. As mentioned above, the system facilitates the mobilisation of resources and directs them towards District Central Cooperative Banks, catering to agricultural and non-agricultural endeavours.

 Additionally, it manages the refinance provided by the National Bank for Agriculture and Rural Development (NABARD) for short-term and medium-term agriculture and allied sector loans. The bank also maintains the Primary Cooperative Development Fund, which is used to strengthen the infrastructure facilities of Primary Agricultural Cooperative Banks in the state.

District Central Cooperative Banks (DCCB): These banks are located at the district headquarters or prominent towns. They have multiple sources of funds, including their share capital and reserves, public deposits, and state cooperative bank loans. Their main function is to lend to primary credit societies and undertake regular commercial banking activities. DCCBs have branches mostly in rural areas and serve the credit needs of agricultural and non-agricultural purposes within their operational areas.

Primary Agricultural Cooperative Banks (PACB): In Tamil Nadu, there are 4,474 Primary Agricultural Cooperative Banks. These banks provide credit to farmers, distribute inputs like fertilisers, and run outlets under the Public Distribution System. They offer short-term and medium-term credit for agriculture and allied activities, with short-term loans repayable within 12 to 15 months and medium-term loans within 3 to 5 years.

(B) Long-Term Credit Structure:

The Long Term Cooperative Credit Structure includes the Tamil Nadu State Agriculture and Rural Development Bank at the state level and 180 Primary Cooperative Agriculture and Rural Development Banks at the taluk/block level. These institutions credit members with investment credit for minor irrigation, horticulture, plantation crops, and other agriculture and allied sectors.

Tamil Nadu Cooperative State Agriculture & Rural Development Bank (TNCSARDB): This apex institution raises funds by issuing ordinary and special debentures. It is the primary source of long-term loans for developing agriculture and allied activities. The bank operates through regional offices, each covering one or two districts. It coordinates with affiliated primary cooperative agriculture and rural development banks.

Primary Cooperative Agriculture and Rural Development Banks (PCARDB): There are 180 of these banks at the taluk/block levels. They provide farmers with long-term loan assistance, with 5 to 15 years of repayment periods. These banks support various developmental purposes, including minor irrigation, plantation crops, and diversified activities like poultry, dairying, and sericulture. They receive financial assistance from the Tamil Nadu Cooperative State Agriculture and Rural Development Bank and have been permitted to finance artisans, artisans, small-scale entrepreneurs, and more.

(C) Urban Cooperative Banks (UCB):

Urban Cooperative Banks cater to the banking and credit needs of the urban and semi-urban population. Currently, 120 Urban Cooperative Banks operate in Tamil Nadu. They mobilise deposits from the public and extend credit facilities for purposes like housing, business, education, and other non-farm sector activities. These banks also serve small traders, artisans, and individuals from low- and middle-income groups.

Schemes Implemented by Cooperative Credit Structure:

The cooperative credit structure in Tamil Nadu has implemented various schemes to support agriculture and rural development. These schemes include:

  • Waiver of Agricultural Loans: The government has taken steps to waive outstanding crop loans in cooperative banks, providing relief to farmers and revitalising cooperative credit institutions.
  • Interest Subvention for Crop Loans: To encourage prompt loan repayment, the government offers interest subvention, reducing the effective interest rate for farmers who repay loans on time.
  • Interest Reduction for Non-Farm Sector Loans: The government has reduced interest rates on outstanding non-farm sector loans to clear overdue amounts.
  • Jewel Loans: Cooperative banks provide loans against pledged jewels for agricultural and non-agricultural purposes.
  • Kisan Credit Card Scheme: This scheme ensures timely credit to farmers to minimise delays in disbursement.
  • Micro Credit Scheme: Implemented by District Central and Urban Cooperative Banks, this scheme benefits small merchants and street vendors, offering loans without security.
  • Assistance to Self-Help Groups: Lending through self-help groups promotes financial inclusion and enhances repayment rates.
  • Women Entrepreneur Loan Scheme: District Central and Urban Cooperative Banks provide loans to women entrepreneurs to start small industries and service activities.
  • Working Women Loan Scheme: Loans are provided to working women with monthly incomes, repayable in instalments.
  • Maternity Loan Scheme: Cooperative credit institutions offer maternity loans to pregnant women.
  • Professional Loan: Doctors and engineers can access professional loans from District Central Cooperative Banks.
  • Interest-Free Share Capital Loan to SC/ST Members: SC/ST members receive interest-free share capital loans to enhance their borrowing capacity.
  • Interest-Free Share Capital Loan to Women Members: Women are offered interest-free share capital loans to boost their participation in cooperative banks.

These schemes aim to support various segments of the population, especially farmers and marginalised groups, in their financial endeavours and contribute to rural and urban development in Tamil Nadu.

Conclusion Points 

Finally, agriculture loans from cooperative groups in India are very important for farmers and people who want to start their farms. These loans have a variety of ways to pay them back, reasonable interest rates, and easy application processes. People can get the money they need to improve their farms, buy new tools, or expand their businesses by tapping into the combined strength of these societies.

Also, applying for these loans online speeds up the process, making it easier for people in rural areas to get them. Check out the options for cooperative society agriculture loans today if you want to become a farmer or start your own farming business and need money.


1. What is a loan for farming from an Indian cooperative society?

In India, an agriculture loan from a cooperative society is money that a cooperative society gives farmers for farming.

2. How does a loan from a cooperative group for farming work?

Farmers must become members of a cooperative group and meet certain requirements before getting a loan for farming. Once accepted, they can borrow money at reasonable interest rates to do various farming-related things.

3. Can I use the Internet to ask for a loan from a cooperative society for farming?

Many cooperative groups now let you apply online to make things easier. You can fill out the application form, send the needed documents, and pay online at their website.

4. What are the pros of getting a loan from a cooperative group for farming?

Cooperative groups often offer lower interest rates on loans for farming than traditional banks. Farmers can also get personalised help and advice from cooperative groups, which helps them make smart choices.

5. Do you need to do certain things to get a loan from a cooperative society for farming?

Yes, each cooperative group may have rules about who can join. Mostly, you must work in agriculture and be a relevant group member.

6. How can an agriculture loan from a cooperative group be used to pay for farming activities?

Usually, agriculture loans are given to buy land, tools, seeds, fertiliser, irrigation systems, animals, and other things, as well as to cover working capital needs.

7. how long does it take to get a farm loan from a cooperative society?

The time needed for approval may differ for each cooperative society based on their rules and policies. On the other hand, most societies try to handle applications quickly and correctly.

8. Do I need to put up collateral when I ask for a cooperative society loan for farming?

Cooperative groups may or may not ask for collateral, depending on how good your credit is and how much you want to borrow. Sometimes, they ask for security, like land papers or a crop lien.