Several ways and precautions for agricultural loans

Several ways and precautions for agricultural loans

In order to support agricultural development, the state has introduced a number of loan policies in the financial sector, including general loans, mortgages for land management rights, and mortgage loans for rural houses.

1. Microfinance

Loan banks: Agricultural Bank, Postal Savings Bank, Credit Union and other commercial banks.

Taking rural credit cooperatives as an example, farmers can apply directly to rural credit cooperatives with the “Loan Certificate” and valid identity documents. When receiving a loan application, the rural credit cooperatives should review the use and amount of the loan. The general quota is controlled within 50,000-100,000 yuan. The specific amount varies from place to place.

Credit unions also have farmers' joint guarantee loans, and three or five farmers form a joint insurance group to guarantee each other's loans. The loan amount with the joint guarantee is relatively higher than the personal credit loan amount.

Microfinance considerations

According to the current regulations, only agricultural production cost loans such as planting and aquaculture; loans for agricultural machinery and equipment; consumer loans for agricultural pre-production, mid-production, post-natal service loans, purchase of daily necessities, housing construction, treatment, and schooling for children can only be used. The use of small household credit loans.

Second, cooperative loans

Farmers' professional cooperatives and their member loans can implement preferential interest rates, and the specific preferential margins are determined by localities and local conditions.

Cooperative loan conditions:

Approved and registered by the administrative department for industry and commerce, obtained the business license of the legal professional cooperative of farmers; has a fixed production and operation service place, and engages in production, management, service and other activities as stipulated in the charter of the farmers' professional cooperatives; has a sound organization and financial management system. It can submit relevant materials to rural credit cooperatives on time; open deposit accounts in banks applying for loans, voluntarily accept credit supervision and settlement supervision; no non-performing loans and interest payments; other conditions stipulated by banks.

Third, family farm loans

The Agricultural Bank has a loan amount of 10 million yuan for family farms. In addition to meeting the demand for liquidity for purchasing agricultural production materials, it can also be used for farmland infrastructure construction and payment of land transfer costs. The loan period can be as long as 5 years.

What are the forms of mortgage or guarantee?

In response to the difficulty of guaranteeing in rural areas, the Agricultural Bank has innovated agricultural machinery and equipment mortgages, agricultural and sideline products mortgages, forest tenure mortgages, rural new property rights mortgages, “company farmers” guarantees, professional cooperative guarantees, etc., and allows for the distribution of qualified customers. Credit Loans.

4. Land management rights mortgage loan

The rural land contractual management right mortgage refers to the loan that the farmer or cooperative applies for the legal rural land contractual management right to the financial institution.

(Original title: What are the loan methods for agricultural loans?)