Agricultural loans are essential for farmers, and around 75 percent of the loans from rural banks are for agriculture. Farmers can benefit from comprehensive information when taking crop loans.
Crop Loan Interest: Interest on crop loans is usually lower, around 7 percent, compared to other types of loans.
Crop Loan Renewal: Farmers can benefit from renewing crop loans at the right time. If a farmer repays a one lakh rupee loan on time, the interest rate is only 7 percent.
Additionally, the government will refund 3% interest to the farmer’s account if the payment is made within the stipulated time.
Late Payments: If the loan is repaid after the due date, the farmer will not receive the 3% government subsidy, and the interest rate on the loan will increase to 13.75 percent.
Lenders: Crop loans are primarily available in service area banks in villages or towns, such as commercial, rural banks, or primary cooperative societies.
Loan Amount: The crop loan amount varies based on the scale of finance decided by the District Consultative Committee in each district.
Surety and Mortgage: Crop loans up to Rs. 1,60,000 will be provided without any mortgage and guaranteed by two members. Land needs to be mortgaged for loans between Rs. 1,60,000 and Rs. 3,00,000.
Documents Required: For applying for a crop loan, the following documents are required:
- Farmer Pass Book
- Pahani issued by Mandal Revenue Officer
- 1-B document relating to land
- No due certificate from other banks, if requested by the bank manager
- Details of crops cultivated and land area
- Aadhaar Card, PAN Card, and Passport size photos
For more details, contact the nearest bank officials.