Last Updated: December 26, 2022, 12:29 IST
A farmer may use agricultural loans to finance seasonal farming operations or allied ventures like raising livestock, cultivating fish, or buying land or farm equipment. This kind of financing also aids in hiring labour for crop cultivation and harvesting as well as purchasing supplies like fertilizer, seeds, insecticides, and other things.
Purchasing land or agricultural equipment, storing and transporting produce, and the expense of tilling the land for sowing, weeding, and transplanting is also covered by agricultural loans.
Agricultural loans are available to farmers starting at 7% p.a., with processing fees ranging from 0% to 4% of the loan amount. There are various types of agricultural loans taken by farmers.
Crop loans, also referred to as retail Agri loans, enable a farmer to cover short-term costs associated with the cultivation of crops, upkeep of farm machinery, and other post-farm activities. While applying for this loan, the farmer receives a credit card called a Kisan Credit Card. This can be used to withdraw money and utilise it to make the purchases they need for their farming operations.
A farmer might take advantage of these long-term financing programmes to cover their non-seasonal needs. This loan can be used to purchase or upgrade machinery like windmills and solar panels, among other things. Such lending programs allow for repayment terms of up to four years.
Taking cognisance of the condition of farmers in India, The Punjab National Bank in its miscalled services has added agricultural loan facilities. Instead of writing an application for the loan, farmers can get a loan via a miss-call facility.
Farmers in need of loans can give missed calls on 18001805555. Apart from this, a loan seeker can send a text message to 56070 or can contact the call centre at 18001802222. Another way to do this is to apply through the net banking website netpnb.com or PNB One.
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