Agricultural Allied Activities Loan

Agriculture Allied Activities Loan is financial assistance provided to farmers and entrepreneurs for activities that are closely related to agriculture but fall outside the traditional crop cultivation. These activities contribute to the overall development and growth of the agriculture sector.

Examples of Agriculture Allied Activities:

• Livestock rearing: dairy farming, poultry farming, pig farming, sheep and goat rearing, beekeeping (apiculture), etc.
• Fisheries: aquaculture, fish farming, prawn farming, etc.
• Agro Processing: food processing, dairy processing, fruit and vegetable processing, etc.
• Agricultural Services: tractor rental, custom hiring, farm machinery repair, etc.
• Sericulture: silkworm rearing.
• Horticulture: fruit and vegetable farming.

Benefits of Agriculture Allied Activities Loan:

• Diversification of income: Reduces dependence on crop farming.
• Employment Generation: Creates employment opportunities in rural areas.
• Value Addition: Increases the value of agricultural produce.
• Rural Development: Contributes to overall economic development.

Types of Loans:

• Term Loan: For purchasing livestock, machinery, equipment or setting up processing units.
• Working Capital Loan: For meeting day-to-day operational expenses.
• Investment Loan: For purchasing land, constructing sheds or creating infrastructure.