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Individuals who are in need of funds for activities allied to agriculture are eligible for a MUDRA loan. Activities allied to agriculture are:
- Pisciculture
- Bee keeping
- Poultry
- Livestock-rearing,grading, sorting
- Aggregation agro industries
- Diary, fishery
- Agri-clinics and agribusiness centres
- Food and agro-processing, etc
Any Indian citizen who has business plans for a non-farming sector income generating activity in the manufacturing sectors or in the service sectors can avail a MUDRA loan. But you cannot borrow for crop loans, for land improvement such as canal, irrigation and wells.
When it comes to lending for agricultural purposes, all financial institutions fall under the National Bank of Agriculture and Rural Development (NABARD). Financial institutions are working with the government of India to boost the agricultural sector. There are several innovative schemes like the Kisan Credit Card. This scheme was launched to fulfil the financial needs of the agricultural sector by providing loans for crop cultivation, farm maintenance, etc.