Are the traders and intermediaries engaged in trading/processing of agricultural commodities eligible for agricultural credit?
Loans to entities exclusively engaged in processing, packaging and marketing of agricultural produce shall not fall under agricultural financing and would be covered under commercial or SME financing. However, agricultural financing can be extended to entities (including corporate farms, partnerships and individuals) engaged in farming activity as well as processing, packaging and marketing of mainly their own agricultural produce, provided 75% of the agriculture produce being processed, packaged and marketed is being produced by the abovementioned entities themselves. How can a person get agricultural loan from banks? Applicant must be a genuine farmer/tenant. For this purpose a farmer’s name must appear in revenue record and a tenant should establish this fact through a government acknowledgement or the applicant must be handling Non-Farm activities like livestock, poultry, dairy farming, fishery, forestry or firms/ cooperative societies/self help groups undertaking agriculture relat
