Mr. Yogesh Santosh Dutonde
A farmer uses an agricultural loan to finance seasonal agricultural activities or related activities such as animal husbandry, fish farming or the purchase of land or agricultural machinery. This type of loan also helps in buying inputs like fertilizers, seeds, pesticides etc. and hiring labor to cultivate and harvest the crops.
Given below is the list of types of agriculture loans that you can avail for yourself:
Crop Loan: These types of loans are also known as Retail Agri Loans is a type of loan which allows a farmer to meet his short-term expenses arising due to cultivation of crops, maintenance of farm equipment, and other post farm activities. The farmer gets a credit card called the Kisan Credit Card on availing this type of loan which they can use to withdraw money to make necessary purchases to meet their farming needs.
Agricultural Term Loan: These are long-term loan schemes which a farmer can avail to meet their non-seasonal expenses. One can avail this loan to buy or upgrade equipment such as windmills, solar power, etc. The repayment tenure for such kind of loan schemes can go up to 4 years allowing the farmer to repay the amount in a convenient manner.
Solar Pump Set Loan: If a farmer is involved in small irrigation projects and requires capital to buy photo voltaic pumping system, then availing a solar pump set loan is the appropriate option. The repayment tenure for such loan schemes goes up to 10 years.
Loan for Allied Agricultural Activities: Farmers involved in allied agricultural activities can apply for such type of loans if they need to raise working capitals to meet their farming expenses.
Farm Mechanisation Loan: If a farmer requires working capital so that they can either purchase new farming machineries or upgrade their existing ones such as purchasing a new tractor or getting an old one repaired, then they can apply for these types of loan schemes.
Agricultural Gold Loan: The applicant can avail this type of loan by pledging their gold ornament as security. The loan amount can be used to meet various farming expenses such as buying machinery or to meet costs related to cultivation of crops. These loans are offered at a low interest rate and allow a farmer to use their gold which would otherwise stay idle.
Forestry Loan: If a person is involved in growing crops which grow on trees, then they can apply for a forestry loan. The loan amount can be used to meet the cost of activities such as converting a barren land into a farming land, setting up irrigation channels, clearing wild trees, etc.
Horticultural Loan: Farmers involved in setting up vegetable farms and orchards can apply for a horticultural loan which not only allows them to meet the cost of managing such type of farms, but also helps in meeting the expenses related to other horticulture activities such as clearing wild trees, setting up fence, etc.