A Simple Guide to Getting Agricultural Land Mortgage in India

Published on:
December 19, 2023

Getting an agricultural land mortgage in India can be a helpful financial move for farmers and landowners. It allows you to use the value of your land for various needs. In this guide, we'll walk you through the steps and key factors involved in obtaining an agricultural land mortgage. By the end, you'll have answers to questions like how to get a mortgage loan against agricultural land, how much loan you can get, the interest rates, and the overall process. Let’s start with the first step:

Step 1: Familiarizing Yourself with Eligibility Criteria

Before delving into the realm of agricultural land mortgage loans, acquaint yourself with the eligibility criteria stipulated by lending institutions. These criteria, which may vary among banks, typically encompass factors such as land ownership, type (irrigated or non-irrigated), landholding size, and income proof. Ensure compliance with these requirements before advancing with the agriculture land mortgage loan application.

Also Read: Best Banks for Agriculture Loan

Step 2: Compiling Your Application Documents

A critical step in the loan application process is gathering the necessary documents. Ranging from proof of land ownership to identity and income proof, these documents play a crucial role in establishing credibility and assisting the lending institution in a comprehensive evaluation of your application.

Step 3: Initiating the Application Process

Visit the nearest branch of a bank or financial institution offering agricultural land mortgage loans. Obtain and accurately complete the loan application form, providing details about your land, its valuation, and the desired loan amount. Verify all information before applying.

Step 4: Evaluating Agricultural Land

Upon submission, the lending institution assesses the value of your agricultural land. This valuation, conducted by an in-house or registered valuer, considers factors such as location, fertility, proximity to amenities, and market values of similar properties. The valuation report determines the eligible loan amount.

Step 5: Approval of the Loan

After scrutinizing your application, documents, and land valuation report, the lending institution decides on loan approval. Factors such as eligibility, creditworthiness, and the land's viability as collateral are taken into account. Meeting the criteria and aligning with the land valuation increases the likelihood of your loan application being approved.

Step 6: Disbursement of Funds

Upon approval, the lending institution finalizes the loan agreement, providing necessary paperwork with terms and conditions. Once signed, the loan amount is disbursed to your bank account or provided as a demand draft based on your preference.

Step 7: Repayment of the Loan

Repaying the loan follows a predetermined schedule, including regular installments covering the principal and interest. The repayment duration and frequency are defined in the loan agreement. Adhering to this schedule is crucial to avoid penalties or legal consequences.


Securing a mortgage loan against agricultural land can be a strategic financial move. Understanding the process, meeting eligibility criteria, and providing necessary documentation are key aspects. For personalized guidance, consider consulting professionals or financial advisors to choose the right lending institution that aligns with your needs.

Agricultural Land Mortgage FAQs

1. Can I mortgage my agricultural land?

Yes, you can mortgage your agricultural land. Mortgaging involves using the land as collateral to secure a loan. If you fail to repay the loan, the lender may have the right to take possession of the land through foreclosure. Specific regulations may vary, so it's essential to understand local laws and consult with experts before proceeding.

2. Can we get a mortgage loan on land?

Yes, you can obtain a mortgage loan on land. Mortgage loans for land involve using the land as collateral to secure financing. The loan amount is typically based on the appraised value of the land, and if you fail to repay the loan, the lender may have the right to take ownership of the land through foreclosure.

Frequently Asked Questions

1. How much does 1 acre of land cost in Bangalore?
1 acre in Bangalore could cost around 55-60 lakhs.
2. Is it good to buy agricultural land in Bangalore?
100%! Agricultural land in Bangalore is a dream come true, given the area, location, and the returns offered at your investment.
3. Which area is best for agriculture in Karnataka?
Naganpally is considered to be a prime location for an investment considering the attractions in its close vicinity amongst others such as Gulbarga, Belagavi, Tumakuru, Raichur, Vijayapura, Bagalkot, etc.
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