Agri Finance is a subdivision in rural development. The main aim of this division is to help the common man with farming and other related financial needs. In this division, financial solutions are made available for various farming and non-agriculture activities. Agri Finance involves the development of policies that will help the farmers with their problems related to agriculture loan. The policies can be in the form of contracts, loans, grants or even micro-enterprise programs.
Since the focus of Agri Finance is on agricultural activities, most of their programmes are designed in such a way that they provide support to the farmers who cannot look for bank loans and other conventional loans. Some of the activities under this division are training, awareness and information dissemination. The trained professionals conduct various seminars to spread the message among the farmers. These seminars are also aimed at solving problems of the farmers.
There are two main policy areas of Agri Finance. They are: Non-agricultural and Agricultural. Non-agricultural programme aims at improving the market value of agricultural products and reducing the cost of production. Farmers get appropriate market price for their produce. The objectives of this programme are also to promote better management of farm lands.
On the other hand, agricultural programme focuses on increasing the productivity of the farm lands. These policies can either be formal or informal. The formal policies include technical assistance, machinery, inputs, technology, farm extension policies, protection rights, marketing policies etc. While the informal policies include farm extension, financial advice, marketing strategies etc.
The Agri Financing can be classified into two types – secured and unsecured. The secured agricultural loan is a loan that is secured by some form of collateral. The most common forms of collateral are land, agricultural implements, monetary assets etc.
While a mortgage is mostly a secured type of Agri Finance, small business line of credit (SBL) can also be a form of agricultural loan. The SBL has no collateral or security involved. However, the interest rates in this loan are quite high as compared to the mortgage. SBLs are best suited for small scale farming.
An Agri Loan can be of various types depending upon the type of farming, production capacity and other relevant factors. For instance, there is farm loan for selling or farming existing farm lands. Here the borrower gets money for buying additional lands and for establishing new farms. Another form of Agri Loan is for purchasing agricultural implements and machineries. Here the borrower gets money for purchasing these implements and machineries used in the production of various agricultural products.
Agri Finance is an important segment in farming. A large number of Indian farmers are now involved in this business. Most of them take help from farm owners’ financial adviser to expand their business. The demand for farm loans has increased manifold in recent times due to the lack of financial institutions providing such loans. Many farmers have now decided to get their businesses developed through self employed loans. Self employed loan for a farmer means that he will get financial help for purchasing all the machineries and implements required in the process of developing the farm.
Farmers are now focusing more on growing produce in smaller spaces. As a result, they are now looking out for ways to reduce the costs related to farming. Therefore, they look out for Agri Financing options. The farm loan provided by Agri Finance enables a farmer to buy machineries and implements for increasing the yield from the land. Farmers can also improve the soil condition through the utilization of proper tools. This will help them get better profits and help the farmers to attain the target of increasing the crop.
The Agri Loans can also be used for purchasing lands or for improving the infrastructure on the farms. The Agri Finance companies are offering the loans at very competitive rates. These loans are available both for the big and small scale farmers. They also provide the facility to the tenants of the farms too. You just need to fulfill the eligibility criteria and the process of the application will be started.
If you are running a dairy farm then you are certainly familiar with the problems associated with the management of the farm. This is one of the most important activities which needs to be carried out with great attention. If you want to run the farm smoothly then you will have to take out a loan for the purchase of the latest technologies. You need to make purchases for improving the efficiency of the farm. In this context, if you are looking for the right kind of loan then you can opt for the Agri Finance which provides the much required support to the dairy farmers.
Since agriculture is related to many sectors like allied healthcare, livestock, horticulture, rubber, mining, oil and gas, agriculture finance is an excellent option. If you are looking for a reliable source of funds then you can consider opting for these Agri Loans. These loans are free from all kinds of worries and problems. You just have to submit your application for the loan and then you can easily avail the loan. These loans are absolutely free from all kinds of tension and stress related to the repayment of the loan amount