A farmer may get agricultural loans to pay seasonal agricultural operations or related enterprises such as animal farming, pisciculture, or the purchase of land or agricultural tools.
This comprises a Citi loan of $30 million and a JICA loan of $13 billion. "Farmers will use this social financing to IndusInd Bank to purchase farm equipment, crops, seeds, and fertilizers, as well as small agricultural supply chain service providers."
"This transaction, in which Citi collaborates with JICA, represents our first structured co-financing arrangement to support India's agricultural sector," said K. Balasubramanian, Citi's Head of Corporate Banking in South Asia, which includes India, Bangladesh, and Sri Lanka.
You have the option of repaying the loan over a flexible repayment period. The agricultural loan amount can be used for a variety of agricultural purposes, ranging from short-term seasonal farm exercises to long-term investment in farm machinery.
As collateral, agricultural land is pledged. To be qualified for a Loan Against Agricultural Land, the borrower must have clear title to the land.
Lenders often want borrowers to have two years of residence stability. Most banks make loans based on the amount of land pledged.
