Greenhouse farming is a great way of growing crops that has become popular all over the world. It comes with numerous benefits like increased production, lesser production risks, year-round growing, etc.
In order to set up a greenhouse facility, you must have sufficient cash as well as a proper plan. Apart from the establishment of the primary facility, there are various other components that require money and financial assistance in order to work as a whole system.
Costs associated with the purchase of electric motors integrated with pumps, the purchase of tractors and other machinery equipment, the digging of wells and installation of pipes, the installation of irrigation systems, the planting of fruits and vegetables, and so on are examples of such elements. To ensure that all of these things run smoothly and without hiccups, you'll need a reliable source of funding.
Subsidies available from the Government for greenhouse farming
The government provides subsidies as well as financial aid for setting up greenhouse farm. The provided subsidies are either in the form of soft loans or back-ended subsidies on the total cost of the project. Moreover, banks also provide loans for various agricultural purposes under minimum interest rates.
Subsidy pattern for greenhouse farming
It must be noted that the Regulatory body in India for greenhouse farming is National Horticulture Board. NHB provides a subsidy of 50% on a project of 112 lakh maximum ceiling per beneficiary.
National Horticulture Mission offers 50% subsidy up to a maximum limit of 50 Lakhs.
GAIC (Gujarat Agro Industries Corporation) provides a 6% subsidy on loan interest to a maximum limit of 4 lakhs.
Besides this in every state, there is a facility provided by State Horticulture Mission, which provides an additional subsidy of 15 - 25 % on the 50 % provided by NHM.
Any farmer or individual willing to start greenhouse farming can avail subsidy from the government.
Banks that provide loans for Greenhouse Farming
Now, let’s have a look at some of the top agriculture loan providers in our country for Greenhouse farming:
State Bank of India Loan
Under agricultural and rural banking, SBI, country’s largest lender provides financial assistance for greenhouse setup. It also provides a variety of different agricultural loans and financial aid to farmers. They provide appropriate repayment arrangements for farmers' loan amounts and adequate time for farmers to generate money. For more information, go to your nearest SBI branch.
Bank of Baroda Loan
Bank of Baroda provides loans for the construction of a greenhouse or a polyhouse. These loans have zero margins up to 1 lakh, and if the loan amount exceeds 1 lakh, the margin is 10% of the entire project cost (The margin will not include subsidy amount, if applicable for the project). Repayment must be done within 3 - 9 years, with a 6- to 12-month moratorium period.
Central Bank of India Loan
The bank offers financial help through its Poly House, Green House, and Shade Net House Schemes. Loans are available up to 80% of the project cost and a maximum of Rs.5.00 crore. The maximum loan amount for SHGs and JLGs will be Rs.20 lakh and Rs.5.00 lakh, respectively. Repayment choices range from 3 to 12 months with a moratorium period of 3 to 7 years.
ICICI Bank Loan
ICICI bank also provides a variety of farm loans. You can use ICICI Bank's overdraft facility to cover the cost of cultivation as well as other working capital & allied activities. Other loans made available by the bank include those for the purchase of irrigation equipment and other agricultural necessities.
