Agriculture Loans

Sri Lanka obviously has an agriculture based economy and the nation thrives on the basis of this sector. Farming has a set of many activities that are involved in transforming a seed to an end product. There are techniques, procedures and equipment involved in advanced farming. Most of Sri Lankan farmers have limited resources and need to opt for loans to fulfill their requirement.

Agriculture loans in Sri Lanka just don’t involve the farming activities for the cultivation of crops but also any other forms of agriculture such as animal husbandry, horticulture, floriculture and aquaculture.

Some of the main areas covered under a farming or agriculture loans are

Purchase of tractors, harvesters and farming machinery
Purchase of farming lands
Storage facilities
Marketing of the products
Transportation costs
Expansion of agricultural activities


Apart from these, there are also financial aids such as grant and subsidies that provides protection to the farmer in the event of damage to crops due to weather conditions and other factors.

The main purpose of a agriculture loan is to provide credit flow for the smooth functioning of the farming sector in the country. This involves the quantum of production and productivity.

Eligibility required for an Agriculture Loan

All kind of farmers such as small marginal farmers, sharecroppers, oral lasses and tenant farmers are eligible to apply for Agriculture Loans.

A special loan for poor farmers

Capital Union and Wealth Bank has designed a special kind of loan facility to help the poor and illiterate farmers who are not much aware of farming and they go to the unscrupulous money lenders who might charge exorbitant interest from them. This system is linked to the farmers savings account and can be used easily to avail finance for various agricultural activities such as cultivation, farm maintenance, purchase of agricultural equipment and many more other activities.