2023 Agriculture Loan List, Updated!!!(13 + Application guide)

agriculture loan

In the agriculture business world, starting up or running a farm can be very expensive. In regards to the purchase of land and other agricultural tools, especially if you are new to the business. This is why agriculture loans like the types listed in this article are very much important and useful to farmers. It helps farmers carry out their farming plans and activities successfully.

In this article, you will learn what is agriculture loan, how to acquire it, the requirements, the scheme, the list, and the agric loan without collateral. It also explained poultry farm loans in Nigeria and how to apply for an agriculture loan in Nigeria. Isn’t that interesting?

What is Agriculture Loan?

An agriculture loan is a fund or resource given for farming and other related purposes. It also helps them in hiring laborers for the cultivation and harvesting of farm crops.

In addition, agricultural loans enable farmers to cover the cost of irrigation systems, crop storage, and transportation. These loans have low-interest rates starting at 7% p.a and a processing fee range of zero to four percent.

Agriculture Loan Scheme

Before digging further into the agriculture loan scheme. There are two major problems citizens face especially young people, face when they think of going into farming. These problems include, (1) the kind of agriculture business to start and (2) raising capital for the business.

However, these challenges have been major reasons many have erased the need of investing in agricultural business from their mind.

So, in regard to these challenges, the federal government of Nigeria has created avenues, an agriculture loan scheme, and programs for citizens. Moreover, citizens who are into small and large-scale farming now have access to government loans through these schemes. Below are some of these schemes you need to know as an agriculture business owner.

Agricultural Credit Support Scheme (ACSS)

ACSS is an initiative established by the federal government in collaboration with the Central Bank of Nigeria. The Commercial Banking Committee also participates in the initiative to enable farmers to explore more in the agricultural sector in Nigeria more.

ACSS also helps in the reduction of inflation and lower agriculture production costs. It generates also enough for the export of agricultural products to increase Nigeria’s foreign earnings.

The scheme operates through a Central Implementation Committee (CIC) at the national level. But, at the state level, the scheme operates through State Implementation Committees (SICs), which to ensure that the objectives of the scheme are carried out effectively.

Read More: List of Federal Government Agricultural Grant

ACSS loans can be accessed at banks through the state chapters of farmers’ associations for small-scale farmers. But, large-scale farmers can apply directly to the banks in alien with the scheme guidelines.

ACSS funds are given to farmers and agro-allied entrepreneurs at a single-digit interest rate of 8.0 percent. While the project support commences, banks will grant loans to qualified applicants at a 14.0 percent interest rate. Applicants who pay back their facilities on the schedule are to enjoy a rebate of 6.0 percent.

Commercial Agriculture Credit Scheme (CACS)

As an agricultural business owner, you can benefit from the CACS N200 billion Fund. Basically, the facility was established by the CBN, Federal Ministry of Agriculture, and Water Resources in 2009. Meanwhile, the aim is to enrich the development of the agricultural sector in Nigeria by giving financial support to farmers.

The benefit of CACS is farmers are granted loans at a single-digit interest rate of 9% maximum. The fund is available till 2025 so both existing and new agricultural entrepreneurs can benefit from it.

Who Can Apply For CACS Loans?

Apparently, both medium and large-scale farmers involved in the cultivation of crops, fisheries, animal husbandry, etc, can apply for the loans.

Liability companies who are also into agricultural production and its related activities are also eligible to apply for CACS loans.

Agricultural Credit Guarantee Scheme Fund (ACGSF)

Basically, the ACGSF was established in the year 1977 by Degree no 20. It started its full operation in 1978. The Federal Government and the Central Bank of Nigeria hold the share capital of this fund. However, the scheme is mainly managed by the Central Bank of Nigeria.

From studies on ACGSF in Nigeria, the scheme has increased the chances of funds flow to agricultural development. However, the leading shareholders in the scheme have shown greater commitment for the scheme to achieve its massive objectives. They encourage farmers to apply for loans from the participating banks involved in the scheme to enhance their agricultural activities.

In addition, every farmer needs to have knowledge of the agriculture loan scheme and how it works. Get the list of federal government agriculture grants here.

List of Agriculture Loans in Nigeria 2023 (Including Bank of Agriculture Loan)

The government has provided many avenues and schemes to individual farmers and corporate bodies to access agricultural loans. Meanwhile, there is a number of these avenues by the federal government including some commercial banks to grant farmers access to loans. But, we take a look at two major agriculture loans for farmers in Nigeria and how they work.

Read more: List Of Top Agriculture Grants This Year


The Bank of Agriculture of Nigeria stands as a major avenue provided by the federal government to dispatch loans to farmers. Also to other agriculture business owners who seek a loan in terms of raising capital for their agricultural activities.

Originally, BOA activities are run by the federal government. The Central Bank of Nigeria and Federal Ministry of Finance Incorporated act as supporting shareholders of the bank.

BOA should be the first choice of every Nigerian farmer, individual, or corporate body seeking government loans. As we further, we will look at the requirements for this loan and other government agriculture loans, so keep reading.


The Central Bank of Nigeria partners with the federal government to give loans to farmers in Nigeria at low interest.

Basically, to achieve this, the Central Bank of Nigeria has recently made available a close sum of 75 billion naira as grants. These loans can be accessible to farmers and other corporate bodies across the states directly from the Bank of Agriculture.

How to acquire Agricultural loans aside from BOA and CBN

Generally, the federal government also gives farmers access to agriculture loan with requirements, from commercial banks by partnering with them through BOA. Some of these commercial banks include; Zenith Bank, Union Bank, UBA, First Bank, and Stanbic IBTC.


The agriculture loan requirements may vary depending on the type of schemes that you apply for. But below are some general requirements you will need.

  • Must have a good business plan
  • Must have a land property as a collateral
  • Formal application for a credit facility
  • Certificate of Incorporation
  • Memorandum and Article of Association
  • Board Resolution to Borrow
  • Have available, a 20% partial payment of the loan.
  • Meanwhile, have at least a six-month relationship with the bank in terms of making payments into your account.

Agric Loan Without Collateral

The Central Bank of Nigeria has established an initiative called Agric-Business Small and Medium Enterprise Investment Scheme (AGSMEIS). However, the initiative’s aim is to grant loans to farmers and other agricultural businesses without collateral at a 5% interest rate.

What is AGSMEIS?

AGSMEIS is an initiative of the Central Bank of Nigeria as support to the federal government to promote Agricultural businesses. Basically, the initiative serves as a vehicle for sustainable economic development and employment generation.

Basically, the scheme was approved at its 331st meeting held on 9th February 2017. It requires all banks in Nigeria to set aside 5% of their profit after tax (PAT) annually.

AGSMEIS ensures that Small and Medium Enterprises (SMEs) have access to finance, and generate employment opportunities in Nigeria. However, it also ensures adequate development of agricultural value and also sustains agricultural practices in Nigeria.

Read Also: SMALL BUSINESS GRANTS FOR WOMEN: Best 37+ Grants in 2023 (Updated!!!)

How Does AGSMEIS Work?

  • All interested applicants must attend compulsory training with the CBN-certified Entrepreneurship Development Center (EDC) or institute (EDI).
  • Meanwhile, interested applicants should apply for loans through EDI.
  • However, all applications are sent to the CBN for processing and approval.
  • Those who applied will be called for an interview regarding his/her business
  • Then, loans are paid into the account of beneficiaries.
  • All applicants should get business support services. EDI is there to assist and implement a business plan and provide business support services commercially to applicants.
  • Make sales, run your business, keep proper records, monitor sales, and expenses to maximize profit, and pay back the loan.
Requirements for CBN AGSMEIS Funds
  1. Registered business with CAC
  2. Evidence of tax payments
  3. BVN
  4. Letter of Introduction
  5. Letter of Guaranty
  6. Certification by an EDI
  7. Passport photo of you and the guarantor
  8. Valid ID card

Poultry Farm Loan in Nigeria

A poultry farm loan in Nigeria is one of the most lucrative agricultural business loans today. It is a business anyone can think of getting agric loans for. However, this type of livestock business does not come easy. The process involves huge capital which is why it’s on the list of farming that can be considered for grants. The grant is known as a poultry farm loan in Nigeria.

Lately, the demand for livestock products is fast expanding across Africa as a result of population growth and increased urbanization. According to ThisDay Newspaper, Nigeria’s poultry industry is worth over N1.2tn as of 2017.

What is Poultry farm Loan?

It is promissory capital given to poultry farmers to buy capital assets to run a poultry farm. Nevertheless, the agreement binding poultry farm loan in Nigeria leaves a clear commencement and termination of the loan.

In general, this type of loan is obtained through the Bank of Agriculture (BOA). Also, from the Central Bank of Nigeria, and other related Agriculture scheme programs and initiatives. Meanwhile, there are general Agriculture Loan requirements as discussed above but can differ for some businesses.

Read More: Micro Loans: Guide To Help You Make Informed Decisions (+ All You Need)

How To Apply For Agriculture Loan In Nigeria

Below, are some major loans and quick tips on how to apply

Bank of Agriculture Loans

In our world today, BOA loan processing is fast and easy. Meanwhile, you just need to go to one of the bank’s branches. Ask a manager to give you a loan application form. After filling it out, submit the form. Then, look for a manager to discuss all loan requirements.

When everything is good, the applicant will go through loan processing. Meanwhile, this is what you need to know about Bank of Agriculture loans.

Generally, an Agric loan is not exclusive to the Bank Of Agriculture. Central Bank of Nigeria and its initiatives with other commercial Banks have been partnering with the FG to assist Farmers.

Read Also: SME loans: The Updated 2023 List (+Detailed Application Guide)

Which Bank Is Best for Agriculture Loan?

The following are some of the best Agriculture Banks

  • State Bank of India (SBI) State Bank of India (SBI) is the market leader when it comes to agriculture-related financing.
  • ICICI Bank.
  • HDFC Bank.
  • Punjab National Bank (PNB).
  • Axis Bank.
  • Allahabad Bank.
  • Oriental Bank of Commerce (OBC).

Which Type of Loan Interest Rate Is Lowest?

Gold Loan annual percentage rates range between 10% and 16% on average. This is one of the reasons why Gold Loans are among the least expensive loans in India.

How Can I Get SBI Agriculture Loan?

There are 10,000 SBI bank branches that offer loan.
Documentation needed:

  • A form filled out correctly.
  • 2 photos of the borrower the size of a passport.
  • Proof of identification, such as a PAN card, voter ID, Aadhaar card, passport, or driving license.
  • Voter ID, Aadhaar card, passport, or driving license can be used as proof of address.
  • Proof of crops or land used for farming

What Is the Limit of Crop Loan?

To increase liquidity in the farming sector, particularly among small and marginal farmers, the RBI increased the limit on collateral-free agriculture loans from Rs 1 lakh to Rs 1.6 lakh on Thursday.

What Is Maximum Limit for Agricultural Income?

5,000 from the previous year, and the total income minus agricultural income exceeds the basic exemption limit of Rs. 2.5 lakh for a person under the age of 60, and Rs. 3 lakh for a person aged 60 and above.

Does the Government Give Money to Farmers?

Farmers and ranchers have a long history of getting financial help from the U.S. government when they face hard and unexpected situations, like those caused by COVID-19

Who Is Eligible for Kcc Loan?

To qualify for the Kisan Credit, applicants must satisfy the following requirements: Must be involved in farming and other agricultural activities. The applicant’s age must be between 18 and 75 years old. For candidates above the age of 60, a cosigner is required.


Generally, the agricultural sector in Nigeria is expanding its wings and productivity with the help of certain bodies. These bodies under the Federal Government are the Bank of Agriculture, the Central Bank of Nigeria, and commercial banks. However, they grant loans to farmers and other agriculture businesses at a low-interest rate. The purpose is to support and fast-track the agriculture sector in the country, through other Federal Government business grants. Poultry farm loan is not exceptional in Nigeria.

  1. I want a loan to support my fish farming . I have some ponds and no money to stock the pond and feed the juveniles. I started the farming last year with a total of 3000fishes. but the fishes could not grow well due to poor fundings. I need money to Start it afresh for this season.

    1. We assume you are in Nigeria judging from your name. There is a grant currently ongoing click on thenexttitan.com The grant would reward 1000 Nigeria entrepreneurs with 3million naira while the grand winner goes home with 15million naira.

      1. My name is oreagba mojeed and I am also a fish farmer too my farm is situated in ikorodu lagos, I run a farm of 5 ponds of 3000pcs of fish each but feeding is setting me back right now I’m only dealing with 2 ponds I need a loan to boost it up pls

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