Agriculture loan or Krishi loan are offered to the farmers of India for a number of purposes such as purchasing equipment for farming and irrigation, crops for cultivation and other required activities for agriculture. Instead of this, these types of loans are also offered to the people who are involved in other types of agriculture related activities such as animal husbandry, horticulture, apiculture, aquaculture, Silk farming and floriculture. The agricultural loans are offered to the farmers or other individuals at lower interest rates as compared to other types of loans that are offered to the individuals. One of the main purposes behind providing these types of loans is to give them a helping hand so as to meet their urgent cash needs.
In this article, will take a closer look on what are the benefits of Krishi loan or agricultural loan.
So let's get started!
- Competitive interest rates: One off the main advantages of providing agricultural loans is that the interest rates are lower. The interest rates just start at 8.8% per annum.
- Quick processing: Most of the loan providers process the agricultural loan application in just a matter of few days. Once the application of loan gets approved, the loan amount is then disbursed to the person's account in just a few working days.
- Minimal paperwork: One of the biggest advantages that agricultural loan offers is that it requires minimum documentation. The person who is in need of this loan only have to submit some of the primary documents such as ID proof, address proof, land ownership deed and more.
- Flexible repayment tenure: The borrower does not have to worry about repayment of the loan in a particular period of time. They can repay their loan in whatever time span they want. There are both kinds of loans for farmers like short-term and long-term term agricultural loans.
- No hidden charges: The agricultural loans provided to the farmers are highly transparent. This means that all the fees that are required are mentioned in the documents itself. There aren't any hidden charges.
Agriculture is considered as one of the biggest industries in India and so as to increase the farmers to increase the output from the lands, the government is continuously supporting the national and private banks to provide a number of loans so as to benefit the people who are involved in the agriculture and related activities. It is important that you ensure the fact that you compare and check the types of loans, features, benefits and interest rates. This will help you in choosing the right type of Krishi loan that will suit your financial needs.