Agricultural loans are any loans that are availed by a farmer to fund seasonal agricultural operations or related activities like animal farming, pisci-culture or purchase of land or agricultural tools. While seasonal agricultural operations routine activities like include preparing and ploughing land for sowing, weeding, and transplantation where necessary, buying inputs such as fertilizers, seeds, insecticides etc. and engaging labour for cultivating and harvesting the crops.
In India, agriculture has been marked as priority sector because farmers constitute a large part of the population. As such agriculture sector qualifies for priority sector lending at lower interest rates by banks. In India, most of the commercial banks, co-op societies and rural banks provide agricultural loans to farmers.
Why Should You Take an Agriculture Loan
A number of lenders today, offer a range of agriculture loans for the benefit of their customers. The various purposes for which you can avail an agriculture loan are as follows:
Purchase of farming machinery and equipment
Purchase of land
Purchase of vehicles
Establishment of dairy units
Establishment of small poultry units
For working capital needs
For seasonal requirements
For fish farming
Documents Required for Agriculture Loans
The documents that you may be asked to submit at the time of applying for an agriculture loan are as follows:
Duly-filled application form
Any other document mandated by the lender