Calculate your crop loan interest
Year-by-year repayment schedule
| Year | Principal paid | Interest paid | Balance at year end |
|---|
Reducing-balance method. Results are estimates for planning; the lender's Key Fact Statement is final.
Crop loans are short-term and repaid after harvest. Eligible farmers who repay on time can get government interest support, which lowers the effective rate.
Crop Loan at a glance
The figures the calculator starts with come from these typical ranges. Change them to match the offer in front of you.
| Feature | What to expect |
|---|---|
| Typical loan amount | Based on scale of finance per acre, commonly ₹30,000 to ₹5 lakh for small and medium holdings |
| Tenure | Short-term, usually up to about 12 months, linked to the crop's harvest |
| Indicative interest rate | Roughly 7% to 12% a year before any government interest benefits |
| Processing fee | Often nil or a small amount; frequently waived for small farmers |
| Security / collateral | Up to ₹2 lakh without collateral; hypothecation of crop or land mortgage above that |
| Typical time to disbursal | Roughly 3 days to 3 weeks, depending on land records |
From our Crop Loan guide. Ranges are indicative; your offer may differ.
Interest by how much you draw
On a limit of ₹1.5 lakh at 7% for 1 year:
| Amount drawn | Interest a month | Interest for 1 year |
|---|---|---|
| 25% (₹37,500) | ₹219 | ₹2,625 |
| 50% (₹75,000) | ₹438 | ₹5,250 |
| 75% (₹1.13 lakh) | ₹656 | ₹7,875 |
| 100% (₹1.5 lakh) | ₹875 | ₹10,500 |
Drawing the full limit all the time would cost ₹10,500; using 100% costs ₹10,500. A term loan works differently: you repay principal with every EMI, so the balance falls and a term loan of ₹1.5 lakh over 1 year would cost about ₹5,748 in interest. The credit line wins when you need the money only part of the time or can repay it quickly; a term loan is usually cheaper for a fixed amount you need for the whole period.
The prompt repayment benefit
Under the government's interest subvention scheme, eligible farmers get short-term crop credit at about 7% a year, and those who repay on time get a further incentive of about 3%, bringing the effective rate to about 4%. The benefit applies up to a limit set under the scheme, so check the current limit and your eligibility with the bank. On ₹1.5 lakh:
| Months used | Interest at 7% | Interest if repaid on time (4%) |
|---|---|---|
| 3 months | ₹2,625 | ₹1,500 |
| 6 months | ₹5,250 | ₹3,000 |
| 9 months | ₹7,875 | ₹4,500 |
| 1 year | ₹10,500 | ₹6,000 |
How the rate changes the cost
Rates vary by lender and by what you pledge or how your account is rated. On ₹1.5 lakh drawn for 1 year:
| Rate a year | Interest a month | Interest for 1 year |
|---|---|---|
| 7% | ₹875 | ₹10,500 |
| 12% | ₹1,500 | ₹18,000 |
Use it like a line of credit
Repay by the due date to keep the prompt repayment benefit. Late repayment usually means the full rate applies.
How the interest is calculated
Interest on a credit line is worked out on the daily outstanding balance: interest = amount drawn × yearly rate × days ÷ 365. Most lenders debit it monthly. The calculator uses the average amount drawn over the period, so if your balance moves a lot, use a realistic average. Renewal or annual fees are not included.
Before you apply for a crop loan
The calculator tells you what the loan costs. Before you apply, check whether you qualify, what documents lenders ask for and the mistakes borrowers most often make.
Related EMI calculators
Planning tools
Crop Loan EMI: frequently asked questions
How is interest charged on a crop loan?
Only on the amount you draw and only for the days it is outstanding. Here ₹1,50,000 for 1 year at 7% costs about ₹10,500.
Is there an EMI on a crop loan?
Usually not. Most are run as an overdraft or limit, where you pay interest monthly and repay the principal when you can, within the limit's validity. Some lenders offer a term loan version with EMIs.
Is a credit line cheaper than a term loan?
Only if you use it flexibly. Holding ₹1,50,000 for 1 year costs about ₹10,500 here, while a term loan of the same amount repaid by EMIs costs about ₹5,748, because its balance falls every month. Draw only when needed and repay early to keep the line cheaper.
Are there other charges?
Processing fees of about 0% to 0.5% of the limit plus GST may apply, and some lenders charge again on renewal. Check the Key Fact Statement.
What rate will I get?
Indicative rates run about 7% to 12% a year. Your rate depends on the lender and your profile, so enter your own offer in the calculator.
What happens if I do not repay on time?
You lose the prompt repayment benefit, so the full rate applies, and overdue interest may be charged. Late repayment is also reported to credit bureaus.
Rates, fees and limits are indicative ranges for India, reviewed on the date above. KhatuLoans is not a lender and does not decide approval or pricing. Read our editorial policy and how we make money.
Official sources and further reading
These guides are written from Reserve Bank of India rules and official scheme pages. Rules, rates and scheme terms change, so check the current position on these sites and in your lender's Key Fact Statement before you apply.
- NABARD. The National Bank for Agriculture and Rural Development, which supports farm and rural credit.
- RBI: Key Facts Statement (KFS) for loans and advances. The Reserve Bank of India notification that tells lenders to give every borrower a plain-language statement of the full cost of a loan.
- RBI Complaint Management System. Where to take a complaint against a bank, NBFC or other regulated lender if the lender does not resolve it.
- RBI (Pre-payment Charges on Loans) Directions, 2025. Bars pre-payment charges on floating-rate loans taken by individuals for non-business purposes, for loans sanctioned or renewed from 1 January 2026.
- Reserve Bank - Integrated Ombudsman Scheme, 2021. The single complaint scheme for customers of banks, NBFCs and other RBI-regulated lenders.
- RBI: Free Annual Credit Report to Individuals. Credit bureaus must give you one free full credit report with score every calendar year.
- RBI Financial Education. Consumer guidance from the Reserve Bank of India on borrowing, fraud and your rights as a customer.
Edited by Hemant Kumar. Rates on this site are indicative ranges, not offers.