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Tata Capital > Blog > Loan on Property > Documents Required for Loan Against Agricultural Land In India

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Documents Required for Loan Against Agricultural Land In India

Documents Required for Loan Against Agricultural Land In India

Agriculture plays a vital role in India's economy. What’s more enticing is the fact that credit access is increasing in the agricultural sector at a steady pace. Farmers often require financial support to enhance their agricultural activities or address personal needs. Agricultural land becomes a viable option for farmers and landowners to leverage their land's value to secure funds.

To facilitate the loan application process, specific documents are necessary to establish ownership, credibility and the purpose of the loan. Let’s explore the documents required for loans against agricultural land in India. However, before that, the proper understanding of the loan against agricultural land is important.  

What Is a Loan Against Agricultural Land?

A loan against agricultural land is a loan against property where farmers and landowners can use their agricultural land as security to secure a loan from banks and financial institutions.

The value of the land determines the loan amount which can be used for various purposes of the land owner. These include agricultural investments, purchasing equipment and materials and personal needs. The borrower agrees to repay the loan amount along with interest within a specified period. In case of non-repayment, the lender has the right to take possession of the land.

Features of Loans Against Agricultural Land in India

Here are some of the prominent features of the loans against agricultural land in India:

  • Secured Loan: Agricultural land serves as the security for the loan. This reduces the lender's risk and potentially leads to lower interest rates.
  • Flexible Loan Amount: The loan amount is determined by the market value of the land. Depending on the lender's policies, borrowers can secure a percentage of the land's value as a loan.
  • Customised Repayment: Borrowers can choose a repayment tenure that aligns with their financial capacity and goals. Longer tenures result in lower EMIs while shorter tenures lead to higher EMIs and lower interest costs.
  • Diverse Usage: The loan amount can be used for various purposes including purchasing equipment, seeds, fertilisers and livestock as well as investing in modern farming techniques or even addressing personal financial needs.

Eligibility for Loans Against Agricultural Land in India

Before understanding documents for loans against agricultural land, you need to understand the eligibility criteria. Eligibility criteria for loans against agricultural land vary among lenders. However, common factors include:

  • Ownership: You need to provide proof of ownership of the agricultural land against which they are seeking the loan.
  • Land Title: The land title should be clear and free from any legal disputes or encumbrances.
  • Creditworthiness: Lenders assess the borrower's creditworthiness. This can be determined by the credit score, financial history and ability to repay the loan.
  • Repayment Capacity: Lenders evaluate the borrower's income and repayment capacity to ensure they can meet the loan obligations. Income proofs play an important role in this regard.

Documents Required for Loan Against Agricultural Land in India

If you are wondering how to get a loan against agricultural land with documents, here are some of the key documents required for a loan against agricultural land in India:

  • Land Ownership Documents: Title deed/sale deed/land records that indicate ownership
  • Proof of Identity: Aadhar card/passport/voter ID card / PAN card
  • Proof of Address: Aadhar card/utility bills/rent agreement
  • Income Proof: Income tax returns/income certificate
  • Bank Statements: Recent bank statements or passbook
  • Photo: Recent passport-sized photographs

Summing Up

A loan against agricultural land offers a valuable financial solution for landowners seeking to invest in their land or meet personal financial needs. Understanding the loan against agricultural land in India documents required and ensuring their availability is crucial for a smooth loan application process. By providing clear ownership proof, financial documents and meeting eligibility criteria, you can secure the funds you require while leveraging the value of your agricultural land.

TATA Capital is one of the most reputed and pioneering institutions providing multipurpose loans against properties. With quick approvals and attractive interest rates, you can get instant liquidity without losing your asset. Apply now for a loan against your agricultural land with TATA Capital.


Q1. What documents are required for a loan against agricultural land?

For a loan against agricultural land documents, you need to provide land ownership documents such as title deed, sale deed etc. You also need to submit proof of identity (Aadhar card/passport etc.) and proof of address like utility bills or rent agreements. Income proof and recent bank statements also need to be submitted. After submitting the application form with passport-sized photographs, the concerned bank will process your loan application and decide on the approval or rejection thereof.

Q2. Why are these documents required?

Loan against agricultural land in India documents are essential to establish your ownership of the agricultural land, verify your identity and address, assess your creditworthiness through income proof and bank statements and evaluate the land’s value. The loan application form captures important details while photographs and collateral assessment reports provide a comprehensive picture for the lender to make an informed lending decision.

Q3. How do I get the required documents?

Land ownership documents can be obtained from relevant land authorities or government offices in your region. Proof of identity and address can be gathered from official documents like Aadhar cards, passports, and utility bills. Income proof can be provided through tax returns or income certificates. Bank statements can be acquired from your bank. The loan application form is usually provided by the lending institution.

Q4. What happens if I don't have all the required documents?

If you don't have all the required documents, your loan application process might be delayed or face challenges. Lenders rely on these documents to assess your eligibility and creditworthiness. Missing documents could result in rejection or unfavourable loan terms. It's crucial to gather all necessary documents to ensure a smooth loan application process and increase the likelihood of approval.

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