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Agri & Rural

Last Updated on: 01/11/2023




Lending to Farm credit including Allied activity, Agriculture infrastructure & Ancillary activity (Except Food & Agro activity).

Target Group

Individuals, Proprietary concern, Partnership Firm, Private limited company, Public limited company, LLP, OPC etc


· Working Capital - Financing for stocks/receivables /other operational expenditures.

· Term Loan - Purchase of fixed assets such as machineries, equipment, construction of factory/ warehouse/ cold storage/ poly house/ rural godown/ office and its interior decoration & furnishing/installation of solar systems etc., purchase of Commercial vehicles/ tractors / power tillers, setting up Food and Agro processing units, Agri Clinics/Agri Business Centre's, Agri-infrastructure projects.

Amount of Loan

  • Minimum- Above Rs. 10.00 Lakh,
  • Maximum- Rs.10.00 Crores


Prime Security:

Liquid assets such as Life Policies of LIC of India and private companies approved by IRDA, NSC/KVP etc. or immovable property.

Collateral Security:

Working capital (FB & NFB): -

Hypothecation of fully paid stock and book debts. Branch to conduct unit visit on quarterly basis to ensure that unit is functioning.

Term Loan: -

Hypothecation/mortgage of assets created out of the Term Loan.  

Rate of Interest

Refer - Interest Rates at a Glance (Click here)

Repayment Period

10 years including moratorium period (Monthly, Quarterly, Half yearly and annually based on the activity undertaken).


· Maximum 18 Months

For other details, please contact your nearest IOB branch.