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.
Steps to get a Secured Loan on Credit
- Compare all the lenders and the rates that the lender is providing for the crop loans. Look into private sector as well as specified organisations.
- Based on your initial check, choose certain lenders and make a list so that you know who to approach for different purposes.
- Run a background checks on the lenders and look into their financial stability and those who have a good customer service.
- Approach a lender and get a quote and then approach the remaining lenders and try to negotiate the rates.
- Choose a lender that is understanding of your situation and who is willing to go out of his way to help you.
- Prepare a document that includes details of your previous performance of the crop that you wish to use as a collateral to avail the loan. You must include information on your asset, current liabilities and other relevant information. Include information that may have negatively impact your crop production as well.
- Finally submit the application along with the required documents.
In India, the following banks offer Crop Loans
- Union Bank of India
- IDBI Bank
- State Bank of India
- ICICI Bank
- HDFC Bank
- UCO Bank
- Axis Bank
- Allahabad Bank
- Andhra Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Corporation Bank
- Dena Bank
- Indian Bank
- Indian Overseas Bank
- Oriental Bank of Commerce
- Punjab and Sind Bank
- Punjab National Bank
- Syndicate Bank
- United Bank of India
- Vijaya Bank
The following Cooperative Banks offer Crop Loan Schemes
- National Bank for Agriculture and Rural Development
- Bihar State Co-operative Bank Limited
- Haryana State Co-operative Apex Bank Limited
- National Federation of State Co-operative Banks Limited
- Odisha State Co-operative Bank Limited
- Repatriates Co-operative Finance and Development Bank Limited
- Punjab State Cooperative Agriculture Development Bank Limited
- Andhra Pradesh State Cooperative Bank Limited