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Agri & Rural

Last Updated on: 22/03/2023



  • To supplement the efforts of Government extension system
  • To make available supplementary sources of input supply and services to needy farmers
  • To provide gainful employment to agriculture graduates in new emerging areas in agricultural sector.


The scheme in open to graduates in agriculture and subjects allied to agriculture e.g. Horticulture, Forestry, Veterinary, Animal Husbandry, Dairy, Poultry, Fisheries and other allied activities. They should have been trained by MANAGE (National Institute of Agricultural Extension Management) or by any of their accredited institutes


To set up Agri-clinic, Agri-Business centers for input supply & services to farmers.

An illustrative list of activities which can be financed under the scheme is given below :-

  • Soil and water quality cum inputs testing laboratories (with Atomic Absorption Spectrophotometers)
  • Pest surveillance, diagnostic and control services
  • Maintenance, repairs and custom hiring of agricultural implements and machinery including micro irrigation systems (sprinkler and drip).
  • Agri Service Centres including the three activities mentioned above (Group Activity). Seed Processing Units.
  • Micro-propagation through Plant Tissue Culture Labs and Hardening Units.
  • Setting up of Vermiculture units, production of bio-fertilisers, bio-pesticides, bio-control agents.
  • Setting up of Apiaries (bee-keeping) and honey & bee products' processing units.
  • Provision of Extension Consultancy Services.
  • Hatcheries and production of fish finger-lings for aquaculture.
  • Provision of livestock health cover, setting up veterinary dispensaries & services including frozen semen banks and liquid nitrogen supply.
  • Setting up of Information Technology Kiosks in rural areas for access to various agriculture related portals
  • Feed Processing and testing units. Value Addition Centres.
  • Setting up of Cool Chain from the farm level onwards (Group Activity).
  • Retail marketing outlets for processed Agri-products.
  • Rural marketing dealerships of farm inputs and outputs

Any combination of two or more of the above viable activities along with any other economically viable activity selected by the Graduates, which is acceptable to the Bank.


Ceiling on project Cost now is Rs.25 lacs for individuals and Rs. 100 lacs for group projects, where group size is 5 or more


Up to Rs. 5 lacs - Nil

Rs. 5 Lacs : 15% - 25 %


Up to Rs. 5 lacs - Hypothecation

Rs. 5 lacs - Collateral /guarantee


5-10 yrs depending upon the activity.

Holiday Period

Maximum of 2 yrs.

Rate of Interest

Varies from time to time. Presently

Upto Rs. 5 lacs- One year MCLR+1.40%

Above Rs. 5 lacs to Rs. 25 lacs- One year MCLR+2.25%

Above Rs. 25 lacs to Rs. 1 Crore One year MCLR+2.75%

For other details, please contact your nearest IOB branch.