Drip irrigation loan is a type of financing available to farmers for installing irrigation systems on their agricultural land. These loans can be offered with zero interest and may also be eligible for government grant support. Farmers registered in the Farmer Registration System (ÇKS) can apply for this loan.
Those who want to benefit from government grants and supports should contract with a company that installs irrigation technology and prepare a project. If the application is submitted together with this project, the loan can be granted.
What Is the Purpose of a Drip Irrigation System?
The drip irrigation system is installed on cultivated land. Its main purpose is to enable efficient watering of crops by conserving water. This is achieved through specially designed piping systems.
Pipes are placed on the soil near the plants’ roots. Water is then delivered to the plants in small droplets using the drip method.
What Are the Advantages of a Drip Irrigation System?
Key benefits of a drip irrigation system include:
- Significant water savings—on average up to around 50% compared to conventional methods.
- Ability to irrigate fields at desired times regardless of weather conditions.
- Labor savings, since spraying and fertilization can be performed via the irrigation system, reducing labor costs.
- Considered one of the most effective systems against erosion.
- Improves productivity and uniform ripening of crops.
- Only targeted areas are irrigated and fertilized, which reduces weed growth and lowers weeding costs.
What Are the Requirements to Obtain a Drip Irrigation Loan?
Conditions for applying for a drip irrigation loan include:
- Only farmers can benefit; applicants must be registered in the ÇKS and provide ÇKS documentation as proof of farming status.
- A pressurized irrigation project must be prepared for the specific parcel where the irrigation system will be installed.
- A water usage permit is required. If water will be drawn from a well, a well permit must be obtained.
- The applicant must own the land where the system will be installed, or if the land is rented, it must be leased for a minimum of 3–5 years.
- Applicants seeking grant support must not have received certain public agricultural supports in the last ten years.
- Documents and permits demonstrating that agricultural production can take place on the land must be obtainable.
- Information about goods and machinery purchases should be included in the application file.
Documents Required from Individuals for the Drip Irrigation Loan
Applicants who are natural persons should provide:
- A photocopy of the applicant’s identity card.
- Title deed (tapu) of the land where the system will be installed; if the land is rented, a copy of the lease contract.
- Proof of registration in the Farmer Registration System (ÇKS certificate).
- If the applicant is an agricultural enterprise, balance sheets for the last three years.
- If collateral is requested by the lender, the relevant collateral documents.
Documents Required from Legal Entities for the Drip Irrigation Loan
Legal entities must submit the following documents:
- Commercial registry gazette showing company registration.
- Registration certificate from the relevant professional chamber.
- Copy of the tax plate (tax registration certificate).
- Title deed of the agricultural land used by the enterprise; if leased, a copy of the lease agreement.
- Balance sheets and income statements for the last three years for the applying enterprise.
- Collateral documents if the bank requests guarantees.
How Much Grant Does the Government Provide for Drip Irrigation?
The government grant for drip irrigation projects can be up to 500,000 TRY. For expenses up to 1,000,000 TRY per enterprise, the state may provide grant support of up to 50% of the eligible costs.
Which Banks Offer Modern Irrigation Loans?
The following banks provide loans for modern irrigation systems:
- Ziraat Bankası
- Halkbank
- VakıfBank
- Şekerbank
- QNB Finansbank
Features of Ziraat Bank’s Drip Irrigation Loan
Ziraat Bank’s drip irrigation loan includes the following features:
- Loans are available for both the investment and operating periods.
- During the investment period, loans of up to 1,500,000 TRY per enterprise may be offered.
- Operating period loans are intended to develop existing enterprises and offer various advantages.
- Repayment terms can be up to five years.
- Low interest rates apply and in some cases full interest subsidy (100% reduction) can be available.
- The product is offered under modern pressurized irrigation loans and covers drip, sprinkler, and micro-sprinkler systems.
How to Apply for Ziraat Bank’s Drip Irrigation Loan
Applicants to Ziraat Bank should compile the required documents and prepare a pressurized water project. These documents should be submitted as a file at any Ziraat Bank branch to apply for either an investment or operating loan.
If application conditions are met, the loan may be granted. Ziraat Bank provides financing for activities such as electricity supply, deep well equipment and drilling, and conveying water from the source to the field. The loan is not intended for simply transporting water to fields without installing modern pressurized irrigation systems.
How to Apply to Agricultural Credit Cooperatives for a Drip Irrigation Loan
Agricultural Credit Cooperatives began offering drip irrigation loans on 09.03.2016. Eligible applicants can apply in person with the required documents to the cooperative offices.
What Information Is Included in the Pressurized Irrigation System Information Form?
The pressurized irrigation system information form requires completion of the following fields:
- Applicant’s name, surname and national ID number (T.C. identity number).
- Application number.
- Province, district or village where the irrigation system will be installed.
- The irrigation method to be used.
- Details about the irrigation area: map/block/parcel number, location, parcel area, project section and coordinates.
How to Benefit from Companies That Install Irrigation Systems
Farmers who receive an interest-free drip irrigation loan can work with certified irrigation installation companies. Farmers who obtain credit from Ziraat Bank can contact approved firms to receive project planning and installation services, often without direct fees. The irrigation project prepared by the chosen firm must be submitted to Ziraat Bank along with a petition to proceed with installation and financing.