India is still an agricultural country. If we want to boost our economy, we can’t deny the importance of agriculture. Fragmented landholdings and less use of technology are holding us back. That’s why we must look for term loans from reputed banks and financial institutions.
In this blog, we will talk about the reasons behind choosing the loan options, popular loan schemes that might help us, and aspects we need to focus on some benefits. If you are not familiar with the basics of different loans, you must use a DSA partner and check the availability of the best agriculture loan.
Reasons Behind the Support of Banks for Organized Agriculture
Both banks and non-banking financial companies can help you with the best loan options in India. The right use of the money can help in organized agriculture and help farmers in other ways. Let’s talk about some of the essential reasons behind choosing the right agriculture loan-
- You can use the money to buy equipment used for farming, like tractors, harvesters, and more.
- Apart from buying modern equipment, we have to create the best infrastructure suitable for organized agriculture.
- Modern farming techniques are in use, and we need to use methods like precision and organic farming.
- We must improve an existing operation by choosing better operating methods.
- Supply chain efficiency is the need of the hour.
These are the prominent reasons behind choosing the financial help offered by banks and financial institutions.
Learn about a Few Popular Schemes Helping Us
As we are familiar with the basics of organized agriculture and the importance of choosing the best-term loans, we need to check a few options that can help us get the best results-
- Are you familiar with the National Bank for Agriculture and Rural Development? This bank offers helpful financial support to other banks regarding Agri-loans. It is their job to promote farming infrastructure in this country.
- Kisan credit card is another popular option that can offer easy credit options, favorable repayment opportunities, and a better harvesting cycle.
- State Bank of India has come up with better loan opportunities for farmers. If you are looking for long-term financing, choosing this particular loan is the best choice for us.
- HDFC agri-business loan has also made its name in the market. People who want to establish their startup around agriculture should choose this particular loan option.
A person should learn about these loan options and their impacts and then choose the right option for themselves. If you are not able to reach a decision, better to consult with a personal loan agent and get help.
Aspects that We Need to Focus on While Getting These Loans
While applying for a loan, you need to fulfill the paperwork carefully. The introduction of the online method has made the whole thing simple, easy, and fast.
- Eligibility Criteria
Every loan option is different, and we need to deal with the eligibility criteria carefully. You will have to present land ownership and documents of your business plan with your loan application. Having a high credit score is always helpful. If the loan amount is big enough, you might have to attach your land papers as collateral.
- Documentation
During the document verification process, the bank officials will thoroughly check your Aadhar card, PAN, and address proof. Not only that, you must show the papers of your land, previous bank statements, and other necessary items.
- Repayment Opportunities
In most cases, the rate of interest is between 8% to 14%. It can vary from lender to lender. The tenure you choose for repayment will also have a lasting impact. Consultation with a professional financial person will help you choose the right loan option and get better results.
- Others
Apart from what we have discussed, you might be eligible for government subsidies and incentives. PM formalization of Micro Food Processing Enterprises can get you a subsidy of up to 1 lakh.
Tips that Will Help You Get the Best Agri-Term Loan
The following tips will surely help you in this process-
- Without comparing different loan options and lenders, we shouldn’t make such a big decision.
- The government is pushing schemes for farmers to boost their farming and reduce costs.
- Finally, consult with an expert for help.
We hope you will keep these factors in mind and get much better results.
