Checklist of Documents Required for Agriculture Loan
Agriculture is one of the main occupations in India. Farmers can apply agricultural loan for investment as well as short tenure purposes, such as production. There are many financial institutions and banks in India that provide farm loans so that farmers can run their agriculture more efficiently. It helps to cover costs associated with running a farm, such as the purchase of seeds, pesticides, fertilizers, irrigation water, and more.
There are common types of agricultural loans in India are offered by the banks are :
Crop Loan/ Kisan Credit Card.
Agriculture Term Loan.
Agriculture Working Capital Loan.
Farm Mechanization Loan.
Horticulture Loan.
Forestry Loan.
Loan for various activitie
Before applying for an agricultural loan, you must double-check the loan plan. Ensure you read all the Terms & Conditions of the loan. You will need to submit all the documents asked by the lender. There are some institutions and banks which offer online services too. In this case, you just need to properly navigate to the lender’s website. Enter all the details asked by the website and upload all the necessary documents. The loan lender will review your application. After the review & verification is completed, the lender will sanction your loan.
The key benefit of an Agricultural loan is that you will not have to submit a bunch of documents. The loan can be procured with a handful of documents with valid identity proof, address, etc. You will have to submit these documents along with the filled application form.
Usually, framing loan is processed and approved quickly as compared to other loan products. As soon as your application is approved, the amount will be transferred to you.
There’s always competition within banks when it comes to the rate of interest, so you will easily get a loan with a low interest rate. A low rate helps in repaying the loan without any burden. Some of the financial institutions provide the loan with an interest rate of 6% Flat per annum.
There are various tenure terms provided by lenders. They provide flexible terms as per your convenience and repayment ability.
Loan application form
KYC documents
Asset documents, which will act as security for the loan
Security PDC (Post-dated cheque)- File Charges 3850.00/- (Security Amount) will be refunded three thousand with the loan amount & DOCUMENTARY FEES:- 850/-(NON- REFUNDABLE) & Rate of interest is 6.25%.
