Farm loan EMI uses the standard reducing-balance formula EMI = [P × r × (1+r)^n] ÷ [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate, and n is the number of monthly instalments - the same formula used for home and car loan EMIs.

Interest subvention is a 2% government subsidy on the interest rate for eligible short-term agricultural loans, and an additional 3% prompt-repayment incentive is given if the loan is repaid on time, which can bring the effective rate down significantly from the base rate.

Kisan Credit Card loans typically require a minimum of 0.5 acres of land, while crop loans need about 1 acre, and tractor or farm equipment loans usually require 1-2 acres, though exact eligibility varies by bank.

Kisan Credit Card and crop loans usually have the lowest effective rates because they qualify for both the 2% interest subvention and the additional 3% prompt-repayment incentive, whereas tractor, land purchase and farm equipment loans are typically priced closer to standard bank lending rates.

Most farm loans require land ownership or land record documents, identity proof (Aadhaar/PAN), address proof, bank statements, and scheme-specific documents such as a tractor proforma invoice for equipment loans or a sale deed for land purchase loans.