India has relied majorly on agriculture, and so it has been contributing significantly to the country’s economy. Farmers have increased their yield and profits with increasing modernisation and technological advancements. However, not all farmers can upgrade their standards due to lack of funding. They require financial support to keep up with the evolving farming practices. It is where Personal Loans come in, providing farmers with the necessary funds to invest in equipment, seeds, fertilisers, and other inputs to increase productivity and yield. But not all farmers can meet the lenders' eligibility requirements. In such a situation, farmers can secure a Personal Loan against their agricultural land as collateral from Hero FinCorp.
Personal Loan against agricultural land, commonly known as Loan Against Property, is a unique financing option that can help farmers meet their financial needs without selling their farmland. Besides farming purposes, this loan can also be used for various other purposes, such as paying for medical expenses, funding a child's education, or organising a wedding.
The interest rates for Loan Against Property can vary depending on the land value and other terms and conditions, including credit score and income. A Loan EMI Calculator can help make a wise decision by comparing different loan plans. Additionally, calculating the loan EMI taken for personal purposes can help farmers better understand the repayment process and plan their finances accordingly.
More About Loan for Agriculture
Loans for agriculture play a vital role in financing the various needs of farmers and the agricultural sector. These loans are designed to provide financial assistance for purchasing agricultural equipment, seeds, fertilisers, and other farming inputs. They also help farmers meet their working capital requirements, cover expenses during the crop cycle, and invest in infrastructure development. The loan interest rates vary depending on the eligibility of the applicants as well as the repayment tenure chosen by the farmer. Choosing a loan tenure that suits one’s financial needs is essential to ensure timely repayment.
What are the eligibility criteria for loan against agricultural land?
Here are the eligibility criteria to keep in mind when applying for a Personal Loan against agricultural land from Hero FinCorp.
| Eligibility Criteria | Details |
| Age | The borrower must be between 25-75 years of age |
| Income | Must have a stable source of income |
| Land Ownership | Must own agricultural land or have a lease agreement |
| Credit Score | Should have a good credit score (generally 650 or above) |
| Documentation | Must provide relevant documents such as land ownership papers, proof of income, and ID proof |
What are the documents required for loan against agricultural land?
Here is a list of some of the essential documents farmers need to submit for an agriculture loan application:
1.Identity proof:
You must submit a copy of any government-approved identification, such as a passport, driving licence, Aadhar card, or PAN card, for KYC.
2.Address proof: ;
Any government-approved document that serves as an address proof like Aadhar Card/ Driving License/ Voter ID Card/ Utility Bill/ Property Tax Receipt/ Lease or Rent Agreement/ Registry Copy.
3.Land-related documents:
You need to submit documents that verify your land ownership, such as the sale deed, revenue records, or land tax receipts.
4.Income proof:
It includes documents like the Profit and Loss Statement, balance sheet for the last three years, income tax returns (last three years), and last six months’ bank statements.
5.Crop-related documents: Documents like crop insurance, sales receipts, and storage receipts.
Submitting these documents along with the loan application can help farmers get their loan processed smoothly. It is advisable to cross-check with us for any additional document requirements.
Depending on the market value of their agricultural land and other eligibility factors, farmers can get a loan between Rs 20 lakh and 8 crore.
Specifications of interest rate for loan against agricultural land
Loan against agricultural land is beneficial for farmers to support their farming activities. Before availing of the loan, it is essential to understand the interest rates that come with it. The interest rate for loan against agricultural land depends on several factors, such as the loan amount, repayment tenure, and borrower's credit score.
It is important to check the interest rates and calculate EMIs before applying. Ensure to read the terms and conditions of the loan agreement carefully and understand the repayment schedule to avoid future complications.
Conclusion
A Personal Loan against agricultural land can be a viable option for farmers’ personal and occupational purposes. One can make an informed decision by understanding the eligibility criteria, necessary documents, and interest rate specifications set by Hero FinCorp.
With proper planning and execution, getting a Personal Loan against agricultural land from Hero FinCorp can significantly help farmers and landowners meet financial requirements and achieve goals.
