How a farmer can take agriculture loan.
Farmers need loan for crop production, to make a poly house or other new or innovative business or existing agriculture business. But we see most of the time farmers cannot get loan.
Here we are going to inform some procedure by which farmers can get loan easily.
- Income tax Return- if farmers file income tax return every year than farmers can get loan easily but most of the time farmers do not file the return. Now don’t be confused by filling income tax return, in this they have to give only detail of income from the agriculture. On agriculture income there is no income tax. There will be no problem to farmers if they file income tax return. They can file income tax return by the help of chartered accountant (CA). He will file the return for farmer at a very nominal fee.
- Training- sometime some government agriculture institutes give training to the farmers. After completing this training, farmer can apply for the agriculture loan. And sometime state government also provides training to the farmers to improve the agriculture in a better way. In this scheme the farmers can also apply for training and loan.
- If farmer establishes an agriculture business for their own income and he runs this business for a long time and fill income tax return every year than a farmer can get loan easily for the expansion of the business for more income.
- Mortgage of Land- sometime bank approves loan by mortgaging the land. So farmers can also take loan by this method.
- Gold Loan- in this farmers can take loan by depositing their gold or silver jewelleries in the bank. By this farmers can take loan easily from the bank. In this type of loan farmers have to pay low rate of interest on the loan in comparison to normal non farmer person. Bank provide subsidy for farmers on the rate of interest of loan. In this bank examines the quality of the jewellery and the jeweler tests the jewellery. After this according to the value of the gold, loan is provided. On the basis of quality, 70-80% loan of the value of the jewellery is provided to the farmer. Taking of such type of loan very easy. It is dispersed to farmer within one or two days.
- Kisan Credit Card- this is the loan which farmers can get very easily. For the six month bank provides loan for a farmers for crop production. This is to repay after six month. So in one year a farmer can take it two times and repay two times too.
- The amount of loan depends on the area of the land, type of crops which he grows, and land is irrigated or unirrigated.
- If farmers pay his loan timely his limit is increased by the bank. It means they can get more loan amount in comparison to earlier.
- The rate of interest of this loan is very low. It is 7%. In some state, to support the farmers, state government gives subsidy on rate of interest of loan, if he pays timely his loan.
- If farmers do not pay his loan timely or at given date than he will have to pay more rate of interest on loan. So farmers must pay his loan at given date.
- Farmers will have to contact to bank which is near to him to apply kisan credit card. The nationalized, cooperative or private bank gives loan to farmers as kisan credit card.
- It is essential to farmers that he should have ownership of land. The farmers without land can not apply for kisan credit card.