How Many Types of Agriculture Loans are There?
Agricultural Loan: how many types of agriculture loans are there?
“Agriculture is our wisest pursuit, because it will in the end contribute most to real wealth, good morals & happiness.”
Agriculture and farming is the most important part of our world and daily life. Farmers are like god for us, they provide food and other products which we need in our daily life. They also need some things in their lives, such as financial help.
The agriculture loan is for the farmers only. This type of loan helps the farmers to buy irrigation and farming equipment and other agricultural things,etc. The most important aim of the agriculture loan is to provide help financially and emotionally to the farmers of our country.
BENEFITS OF AGRICULTURE LOANS
- The agriculture loan is good for the farmers.
- This type of loan helps the farmers to buy agricultural equipment.
- It helps them to buy seeds, weedicides, etc.
- This loan helps the farmers to buy land and fulfill the land cost.
- Agriculture loan helps in investing on the land and its maintenance.
- After natural disasters the farmers have to face many troubles and for recovering from the disasters the agriculture loan is very helpful.
TYPES OF AGRICULTURE LOANS
The agriculture loans are of the following types.
KISAN CREDIT CARD SCHEME:
This is a scheme launched by the Indian government for the farmers of the nation. In 1998 the Indian banks started this scheme for the welfare of the farmers. This scheme provides financial support to the farmers and protects them from the harsh lenders. This loan helps the farmers to know about the procedure of banking such as debiting,crediting,etc.
DAIRY ENTREPRENEURSHIP DEVELOPMENT SCHEME:
This is also a government scheme for the dairy entrepreneurs. This scheme provides loan and financial help to them. This mainly focuses on the dairy sector such as dairy farms,calf rearing,etc.
RURAL GODOWNS:
The rural godown scheme provides place or godowns or warehouses to the farmers for placing their products in them. This is good for the farmers because it helps them to place their crops and other products in a safe place so that it will not get spoiled.
SOLAR SCHEMES:
The solar scheme is not good only for the farmers but it is good for the environment also. In this scheme the farmers are provided by the solar panels and other solar objects which helps them crop cultivation and other farm related works.
LOAN AGAINST WAREHOUSE RECEIPTS:
This is a different type of loan for the farmers. In this the farmers get financial help or loan by the bank because they mortgage their warehouse products. This loan is a collateral loan. Many farmers go for this loan. This loan provides them sufficient funds for their use and helps them in their bad times.
APPLY FOR AGRICULTURE LOAN
Applying for an agriculture loan is not a very long or tough procedure. Here we are writing a few easy steps of applying for this loan.
- The first step before applying for the agriculture loan is to check and analyse your needs.
- Take suggestions from the experts or your family members about the bank from which you want to take a loan.
- Go to any branch of the bank and ask for an application form and other details.
- Fill the application form appropriately and completely.
- Attach all the documentations required for the loan.
- Mention the amount you need in the loan.
- Submit the application form to the bank with the signature.
- Wait for the approval and verification of the application form.
- After the approval of the loan you will get the loan amount in your bank account.
DOCUMENTATIONS REQUIRED FOR AGRICULTURE LOANS
- With the full and detailed filled form the bank asks for the identity proof of the farmer.
- The identity proof could be anything such as aadhar card,PAN Card,Ration card,etc.
- Documents of the land registration.
- The address proof is also required for this loan.
- Bills of tax paid, and other utility bills of the farmers.
- Passport sized photographs of the applicants.
- Bank statements of the applicant are also required for this loan.
ELIGIBILITY FOR AGRICULTURE LOANS
- The applicant should be an agriculturist,farmer,horticulturist,dairy owners,etc.
- The age criteria is 18 years to 70 years of age.
- The residential address is required for the agriculture loan to check the residential stability of at least two years at a place.
- The gaurneter is also required for this loan.
- This loan is a collateral type loan so it needs a mortgage or collateral.
DISADVANTAGES OF AGRICULTURE LOANS
- The agriculture loan is beneficial but it has some drawbacks also such as repayment of the loan.
- The farmers have to repay the loan amount at time but sometimes due to natural disasters and other problems they are not able to do so.
- The crop insurance is another problem because it is not included in the loan amount.
- The loan repayment is very important but when the farmer is not able to repay the loan amount then they get stressed and take big wrong steps.
BANKS GIVING AGRICULTURE LOAN IN INDIA
| NAME OF BANKS | INTEREST RATES | REPAYMENT TENURE |
| State Bank Of India (SBI) | 7% Up wards | 1 year |
| Axis Bank | 7% to 18% | 1 year |
| Central Bank of India | 9.20% on wards | 1 year |
| Indusland Bank | 9.5% on wards | 1 year |
| ICICI Bank | 10.35% on wards | 3 years |
“Agriculture is the great art of directing and aiding nature in the performance of those functions which were designed by Providence for the comfort and subsistence of man.”
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