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Agricultural loans are availed by a farmer to fund seasonal agricultural operations or related activities like animal farming, pisci-culture or purchase of land or agricultural tools. This type of loan also helps buying inputs such as fertilizers, seeds, insecticides etc. and engaging labour for cultivating and harvesting the crops.
In addition, purchasing of land, or purchasing of agricultural tools, storage of produce and transport, cost of ploughing land for sowing, weeding, and transplantation also are included under purview of agricultural loans.