Now leave the moneylender’s business! Government is giving cheapest loan for farming, know the whole process from A to Z

New Delhi: The farmer, who provides food to the country, grows gold even in barren land with his hard work, but often he has to face financial crunch to buy seeds, fertilizers or new technology. Taking advantage of this compulsion, the moneylenders sitting in the villages trap the farmers with their high interest rates. But now you don’t need to worry. With the help of government schemes and banks, taking loan for farming has now become cheaper and easier than ever before. Let us know how you can easily take a government loan by avoiding moneylenders.

Different loans for every need
Banks now understand every small and big need of the farmers. That is why different types of loans are available for different purposes.

• Crop Loan: This is the most common loan, which is given for the expenses of sowing the crop, purchasing seeds, fertilizers, pesticides and till harvesting.
• Machinery Loan: If you want to buy a tractor, thresher, tube well or any other agricultural equipment, then you can take a medium-term loan for this, which gives you 3 to 7 years to repay.
• Agro-Processing Loan: If you want to set up a small business related to farming like milk dairy, poultry farming or grain mill, then banks provide loans for that also.

Kisan Credit Card (KCC): The biggest weapon
Kisan Credit Card (KCC) is the most popular and beneficial scheme for farming today. This is the biggest support for farmers.

• Low Interest: The government gives huge subsidy on KCC, due to which farmers get loans at an annual interest rate of only 4%.
• Easy Process: Once the card is made, you are freed from the hassle of repeated paperwork. You can also withdraw money from ATM as per your need.
• Reward for timely payment: Farmers who repay their loans on time also get additional interest rebate.

Which documents are required for loan?
Before applying for a loan from the bank, keep all your necessary documents ready so that there is no hindrance in the process.

• Identity Card: Aadhar Card, Voter ID or PAN Card.
• Proof of Address: Ration card, electricity bill or water bill.
• Ground Paper: Khatauni, Jamabandi and map of the field.
• Crop Details: Crop certificate issued by Patwari or Agriculture Officer.
• Along with this, 6 months bank statement and passport size photograph are also required.

How to apply? Learn step-by-step
The application process has now become very simple. You can fill the agricultural loan or KCC form by visiting any government bank near you like State Bank of India (SBI), Punjab National Bank (PNB) or Gramin Bank. Submit all your documents. The bank official can verify your form and documents. The loan limit will be decided based on the cost of your land and crop and the money will be transferred directly into your account once approved. Now the facility of application is also available on the online portals of many banks.

You will get double benefit from government schemes
The government is running many schemes to help the farmers, by taking advantage of which you can further reduce your loan burden. Do take advantage of schemes like Pradhan Mantri Kisan Samman Nidhi (PM Kisan), Pradhan Mantri Fasal Bima Yojana (PMFBY), Interest Subvention Scheme (MISS) and PM KUSUM for solar pumps. In case of natural disaster, the government also provides relief like extension of loan repayment period and interest waiver.

three golden tips

1. Always stay away from the deadly interest of moneylenders ranging from 24% to 36%.
2. Use agricultural loan money only for farming related purposes and not for personal expenses.
3. Always pay your installments on time, this will keep your credit score good and it will be easier to get a bigger loan in future.

With the right information and a little awareness, today’s farmer can free himself from the clutches of moneylenders and become self-reliant.