Agriculture is the most important sector in India. But, the farmers face a lot of difficulties with regard to procuring the best seeds to buying the best fertilizer and machinery. To help the farmers and agriculturists with the finances, the lenders are offering crop loans.
Crop loan is a short term advance that is given to the farmers and agriculturists by banks and co-operative societies. The loan amount can be used to purchase improved seeds, fertilizers, machinery etc. The crop loans are provided as agriculture is a priority sector. The loan is usually repaid in single instalment after the crop production. Crop loan is a Secured Loan and the interest is debit on a half- yearly basis at simple rate of interest. The loans provided by any lenders and co-operative societies can be refinanced by NABARD.
The below-mentioned individuals can apply for this scheme:
Under the Crop Loan scheme, all agricultural crops are covered.
The repayment tenure is usually 12 months for all crops. However, in the case of crops such as banana, pineapple, sugarcane, etc., the repayment tenure can range between 12 months and 18 months.
The different documents that must be submitted in order to avail a Crop Loan are mentioned below:
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