All About Agriculture Loans-Information Services
In an agrarian society like India, agricultural farming and dairy is the pillar of the economy and the source of food for its 1.35 billion citizens. Having a bulk of its population dependent on this sector, Indian government and banks have brought out loans which are generic, specific or even activity-related. It is crucial for the farming community to have information regarding such loan or credit schemes in order to generate money as well as safeguard their crops. Information services play a crucial role in generating awareness among the farmers so that they can avail of them.
Such loans or credit is available to anyone related to the agriculture industry — like animal husbandry, horticulture, apiary and others over and above the farmers. They are also available to agri-based firms and companies struggling with finances or looking to expand their services.
DIFFERENT LOANS FOR ALL FARMING RELATED NEEDS
For the benefit of farmers, loans and credit are available for various farming-related activities. It can be for taking care of every-day operational expenses to the storage of crops after harvest. The most common use of loan is when a farmer has to invest in buying machinery like tractors. With regards to land, loans are available for buying of a farm to even expanding an existing one. Also, when it comes to selling their products, one can avail of marketing loans.
Since each farmer has his own unique requirements, information services step in to create greater understanding of the various financial options available to him. Not only does the state and central governments keep renewing or start new agricultural loan policies, but the sops and economic options available for the benefit of farmers will get wasted if they don’t know of it or how to apply for it.
INFORMATION SERVICES ON HOW TO AVAIL LOANS/CREDIT
Also, it is important to keep in mind that such financial aid can sometimes be availed of as grants or subsidies, which means that the farmer is effectively secured if his crop fails under any circumstance. If such information is not provided to the farmers, her remains vulnerable to private, local money-lenders who often fleece the farmers, or will succumb to the losses of crop failures.
KNOW YOUR LOAN PROVIDER
Most of the financial organisations offer assistance to the agricultural sector, for all parties and at all levels. Whether they are private or government banks, every institution which provides credit or loans in the sector falls under the cognizance of National Bank for Agriculture and Rural Development (NABARD).
In the early 1980s, NABARD was the leading name in promoting rural economy by opening up various policies of financial credit. It is a single umbrella entity working alongside the Government of India to secure and safeguard the agricultural economy as well as the stakeholders of it. Although over the years it has launched a number of schemes, it is most well-known for the Kisan Credit Card (KCC).
Leading banks which offer agricultural loans are State Bank of India HDFC Bank, Allahabad Bank which not only offers Kisan Credit Card under its Akshay Krishi scheme but also has its own version of the KCC called the Allahabad Bank Potato Growers Credit Card Scheme, Bank of Baroda, Punjab National Bank.
