Asked by: Ayeisa Yepbusiness and finance interest rates
What is the crop loan?
Last Updated: 29th January, 2020
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Also to know is, what is meant by crop loan?
Crop loan is a short term advance that is givento the farmers and agriculturists by banks and co-operativesocieties. The loan amount can be used to purchase improvedseeds, fertilizers, machinery etc. The crop loans areprovided as agriculture is a priority sector.
Beside above, how do you qualify for an agricultural loan? Farm Loan Requirements
- Minimum Credit Score: 660 (at least one of the three majorbureaus)
- Minimum Loan Amount: $400,000.00.
- Minimum acreage (unless permanent planting operation): 40acres.
- Location: Property must be located within the lower 48 UnitedStates.
- Income: Must have sufficient income to service all debts(personal and business)
In this regard, what are the documents required for crop loan?
Be ready with following documents while opening thisaccount
- Duly filled in application form.
- Identity proof- Voter ID card/PAN card/Passport/ Aadhaarcard,/Driving License etc.
- Address proof: Voter ID card/Passport/Aadhaar card/Drivinglicense etc.
- Land ownership records.
- Records of crops grown.
Why do farmers take loans?
The capacity of farmers to save and invest isvery low. The agricultural productivity is low due to low use ofinputs. The farmers therefore, need credit to increaseproductivity and efficiency in agriculture. This need is increasingover the years with the rise in use of fertilizers, mechanisationand rise in prices.