A loan for purchasing agricultural land can help you buy land to cultivate crops or do other agricultural activities. This secured loan is one of many types of land loans, some of which are:
There are multiple financiers in the market that can help you fund your land purchase for agriculture. Make sure you do your research and choose the right type of land loan for your needs. Read on to know more about loans for agricultural land purchase.
The eligibility criteria for a loan for agricultural land purchase differs based on the lender you choose. Here are some common requirements:
Age: You must be at least 18 years old to be eligible for a loan
Type of land: The land should be agricultural land and should not be used for any other commercial or residential purpose
Income: You should have a regular source of income, either from farming or any other business or profession
Credit score: A good credit score is usually required to get approved for a loan, although some lenders may be willing to work with borrowers with lower credit scores
Documentation: You’ll need to provide proper documentation such as land records, proof of ownership, income tax returns, and bank statements
Here are some common features of an agricultural land purchase loan.
Applying for this type of loan is very similar to that of a home loan. You can visit the lender’s physical branch, talk to a representative and submit the required documents. You can also visit the lender’s website, go to the loan on agricultural land purchase section, fill in the required details, and submit the necessary documents. Post approval you will get the requested loan amount credited to your bank account.
Armed with this information, you can now plan your loan for buying agricultural land with ease. Remember, public sector banks often have agricultural land purchase schemes for small or marginal farmers that come with affordable terms. However, check the eligibility criteria carefully as these may be stringent.
An agricultural land purchase loan is usually a secured loan backed by the land as collateral. A personal loan is usually unsecured.
The interest rate on a loan for agricultural land can vary depending on the lender, loan amount, and repayment tenure. In some cases, they may be based on the MCLR and base rate with an additional interest of 2-3% as per the lender.
The documents required for a loan to purchase agricultural land may include a copy of the land records, proof of ownership, a copy of the sale agreement, income tax returns, bank statements, and any other relevant documents requested by the lender.
Yes, farmers can get personal loans if they meet the lender’s eligibility criteria and have proper income documentation.
