Checklist of Documents Required for Agriculture Loan
Agriculture remains a backbone of India’s economy, with millions relying on farming as their primary livelihood. To support farmers, various financial institutions and banks offer agricultural loans tailored to meet diverse needs, from long-term investments to short-term requirements for crop production. These loans are designed to help farmers manage their operations efficiently, covering essential costs such as seeds, fertilizers, pesticides, irrigation, and equipment. By providing flexible repayment options and competitive interest rates, these loans empower farmers to enhance their productivity and achieve financial stability.
Types of Agricultural Loan
There are common types of agricultural loans in India are offered by the banks are :
Crop Loan/ Kisan Credit Card.
Agriculture Term Loan.
Agriculture Working Capital Loan.
Farm Mechanization Loan.
Horticulture Loan.
Forestry Loan.
Loan for various activitie
Steps to Applying for an Agricultural Loan
Before applying for an agricultural loan, you must double-check the loan plan. Ensure you read all the Terms & Conditions of the loan. You will need to submit all the documents asked by the lender. There are some institutions and banks which offer online services too. In this case, you just need to properly navigate to the lender’s website. Enter all the details asked by the website and upload all the necessary documents. The loan lender will review your application. After the review & verification is completed, the lender will sanction your loan.
Benefits of Agricultural Loan
The key benefit of an Agricultural loan is that you will not have to submit a bunch of documents. The loan can be procured with a handful of documents with valid identity proof, address, etc. You will have to submit these documents along with the filled application form.
Usually, framing loan is processed and approved quickly as compared to other loan products. As soon as your application is approved, the amount will be transferred to you.
There’s always competition within banks when it comes to the rate of interest, so you will easily get a loan with a low interest rate. A low rate helps in repaying the loan without any burden. Some of the financial institutions provide the loan with an interest rate of 6% Flat per annum.
There are various tenure terms provided by lenders. They provide flexible terms as per your convenience and repayment ability.
Income Documents
For Salaried Individuals: Form 16
Certified letter from Employer
Payslip of last 2 months
Increment or Promotion letter
IT returns of past 3 years
Apart from the proof of income of the salaried individual, he would also have to furnish any investment proofs (like fixed deposits, shares, etc) and his passport-size photographs.
Self Employed: Income Tax Returns (ITR) of last 3 years
Balance Sheet and Profit & Loss Account Statement of the Company/Firm (duly attested by a C.A.)
Business License Details (or any other equivalent document)
The license of Professional Practice (For Doctors, Consultants, etc.)
Registration Certified of Establishment (For Shops, Factories & Other Establishments)
Proof of Business Address
File Charges 3880.00/- (Security Amount) will be refunded three thousand with the loan amount & DOCUMENTARY FEES:- 880/-(NON- REFUNDABLE) & Rate of interest is 5.75%.
Loan application form
KYC documents
Asset documents, which will act as security for the loan
Security PDC (Post-dated cheque)
File Charges 3880.00/- (Security Amount) will be refunded three thousand with the loan amount & DOCUMENTARY FEES:- 880/-(NON- REFUNDABLE) & Rate of interest is 5.75%.
