Primary Cooperative Agriculture and Rural Development Bank: For Handloom and Other Non Farm Sector Activities (Tamil Nadu)
By Co-operation, Food and Consumer Protection Department, Government of Tamil Nadu
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Quick Answer
Loans up to ₹2 lakh at 11% to 12.5% interest for farmers in Tamil Nadu moving into handloom and other non-farm activities, from the Primary Cooperative Agriculture and Rural Development Bank.
- Funding amount
- Up to ₹2L
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Tamil Nadu
About this loan
Farmers in Tamil Nadu can take a loan of up to ₹2,00,000 from the Primary Cooperative Agriculture and Rural Development Bank for handloom and other non-farm sector activities. The scheme is run by the Co-operation, Food and Consumer Protection Department of Tamil Nadu.
The loan covers the project cost of an eligible activity, such as startup costs, working capital or expansion. Interest is 11% to 12.5%, and the rate can change as per bank policy. Applications are offline.
You must live in Tamil Nadu, be a farmer, and be engaged in, or want to enter, handloom or non-farm activities. You must plan to use the loan for those activities.
The scheme is meant to help farmers earn from more than agriculture, for example when crop yields or market conditions fluctuate.
Eligibility
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Grant providers
Provider
Co-operation, Food and Consumer Protection Department, Government of Tamil NaduChennai · Tamil Nadu · India
The Co-operation, Food and Consumer Protection Department is a Tamil Nadu state government department, headed by the Minister for Cooperation. It oversees the cooperative societies and banks across the state, and the loans in its citizen's charter are issued by those bodies…
Learn moreBenefits & Funding
- Amount
- Up to ₹2L
- Fund type
- Debt
- Repayment
- Repayable
What You Get
The scheme offers access to a loan of up to ₹2,00,000 for eligible farmers in Tamil Nadu. This financial support is specifically aimed at enabling diversification into handloom and other non-farm sector activities, providing a crucial capital injection for establishing or expanding small businesses. The interest rates for these loans range from 11% to 12.5%, subject to changes, making it an affordable credit option designed to support income generation and enhance the economic stability of rural households. The direct access to funds from the Primary Cooperative Agriculture and Rural Development Bank simplifies the process for beneficiaries.
- Disbursement
- Lump Sum
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are reviewed by the Primary Cooperative Agriculture and Rural Development Bank based on the eligibility criteria and the viability of the proposed handloom or non-farm sector activity. The assessment typically involves verifying the applicant's farmer status, residency in Tamil Nadu, and the genuine intent to use the loan for the specified purposes. The project cost and the applicant's ability to manage the activity are also likely considered during the evaluation for loan approval.
Application Process
- 1
Collect Application Form
Applicant contacts the bank's Secretary/Special Officer to obtain the application form.
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- 3
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
Submit on the official portal
Use the official application link and verify all details before final submission.
- 3
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
Who is eligible for this loan scheme?
The loan scheme is open to residents of Tamil Nadu who are farmers and are either currently engaged in or intend to pursue handloom or other non-farm sector activities. The primary condition is that the loan must be utilized specifically for these stated purposes.
What is the maximum loan amount available?
Beneficiaries can avail a loan of up to ₹2,00,000/- (Two Lakhs Indian Rupees) under this scheme, based on their project cost and eligibility criteria.
What are the interest rates for the loan?
The interest rates for loans under this scheme range from 11% to 12.5%. Please note that these rates are subject to change as per the bank's policies and current market conditions. It is advisable to confirm the prevailing rates at the time of application.
How can I apply for this scheme?
Applications are processed offline. Interested applicants should contact the Secretary or Special Officer of their nearest Primary Cooperative Agriculture and Rural Development Bank to collect the application form. After filling out the form and attaching all required documents, it should be submitted to the concerned authority.
What kind of activities does this scheme support?
This scheme supports handloom activities and a wide range of other non-farm sector activities. The objective is to help farmers diversify their income sources beyond traditional agriculture, enabling them to establish or expand small businesses in rural areas.
Is collateral required for the loan?
The provided details do not explicitly state whether collateral is required. Applicants should inquire about specific collateral requirements directly with the Primary Cooperative Agriculture and Rural Development Bank during the application process.
