Crop Loan Are with the best rates.
This is a loan offered by co-operative societies and banks for the purchasing of farm inputs like fertilizers, seeds, and other agricultural materials to farmers. This is for people who are in the agriculture business and want some money to use or for growing the agriculture.
There are lots farmers who are in need of the money for various reasons and government at certain times also provides them with some subsidy on the loan and that depends on the policy of the state. These loans are at a very lower interest rate and this to help farmers and help them satify their agriculture needs.
The Process to apply for crop loan:
Taking loan isn’t very complicated as many people think. An only thing that must be paid close attention is that real documents must be submitted to bank on time. In India different types of loans needs different documents. Some steps that are involved when applying for the loan includes:
Loan Application Form: The loan application form is given by banks that must be filled rightly and type of loan that you want must get mentioned very clearly. Hence you should know the process well, so that you do things in the right way.
CIBIL Check: The CIBIL Check will be to count credit cards scores. The CIBIL collects as well as maintains all records about loans that you need to pay besides loan that you’re applying for. Suppose your credit card score is much higher, then loan will be sanctioned very easily to you.
Submission of the Necessary Documents: Customers have to produce their ID and other important certificates to bank so they may trust you for offering loan. Thus, submission of important documents is one mandatory procedure that is involved in sanction of the loan.
Loan Approval: Now, it is banks’ job of going through all documents and details correctly and then will sanction you the right loan. When your documents get approved by banks they will approve you for the loan.
CROP Loan Eligibility:
- Farmers applying for crop loans are expected to provide evidence of adequately registered owned/leased lands.
- A minimum and maximum age of 18 and 75 respectively.
Calculation of loan eligibility amount:
- The verifications for the claims by the applicant(s) is made by the bank which eventually decides on the amount eligible for the applicant. This basically includes the scale and production capacity of the farm.
- Prepayment could be made, depending on the financial institution or bank. For many banks, though it is not necessary.
- This depends on the crop; its period of harvest and marketing.
- This is expected not to exceed one year. But in situations where the loan is contracted for crops of long duration, the payment is expected to be repaid within 12-18 months.
- Some tenure can get as much as seven years in situations where the loans are not cash, but given on-terms.
Interest rate bank wise:
- Financial and lending institutions in India disburse short term credit at 7% per annum to farmers.
Top five banks providing crop loan in India:
- Allahabad Bank
- Andhra Bank
- Bank of India
- Bank of Maharashtra
Prevalent banks in India like the State Bank of India, Punjab National Bank, HDFC Bank, ICICI Bank and so forth have effectively set the stage for future benefits by taking after the steps of customer-friendly banking. The primary point of these banks is to divert their working in a-way that can provide relief to their clients.