Eligibility Criteria for Agricultural Loans & their Benefits
For various purposes, agriculture loans are given to farmers. They are used for crops for cultivation, farming and irrigation equipment purchases, and other various agriculture-associated activities. Those who're engaged in other agri-related sectors such as horticulture, apiculture, aquaculture, animal husbandry, silk farming, and floriculture can also avail these loans.
Basically, all sorts of farmers be it small and marginal farmers, oral lessees, sharecroppers, and tenant farmers are eligible to obtain the Agricultural Loans. Following data portrays the general eligibility criteria, however, do bear in mind some additional criteria may apply for some of the lenders:
Who is Eligible?
- Joint cultivator owners
- Individual farmers
- Sharecroppers, tenant farmers, and oral lessees etc.
- Self Help Groups (SHGs)
- Joint Liability Groups (JLGs)
- Tenant farmers
Residential Status: Should be Indian Resident
Eligibility Age: 18-70 years
Land Ownership: Generally, the borrower must own a part of agricultural land or have the access to agricultural land for a designated purpose
The Benefits of Agriculture Loans are:
- These loans have competitive interest rates. This is one of the most prominent benefits of agriculture loans, its interest rates are low and may start at only 8.80% per annum.
- It has quick processing. Most lenders will process the loan applications within a couple of working days, and when the loan gets approved, the amount will get disbursed to the borrower’s account within a few working days.
- These loans have minimal paperwork. Agriculture loans don't require much documentation. The borrower just needs to submit a few primary documents such as photo id proof, address proof, land ownership deed, etc.
- The repayment tenure is flexible. Borrowers may repay the loan as per convenience. There are two types of loans for farmers short-term and long-term loans.
- These loans have no hidden charges. Agriculture loans very transparent, all related charges are mentioned upfront.
- Agricultural loans are used to satisfy a farmer's variety of expenses related to farm activities- purchase new farmland/cattle, manage the operating costs, and other allied activities.
- There are various types of agricultural loans and they are based on end-use and the repayment tenure.
- The secured and unsecured agricultural loans can be availed based on the loan quantum and applicant profile.
