Bank Loan

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editorialteam

Well-Known Member
Dear Readers,

Usually there is no clarity on the interest rate charges by banks to farm and agri loans. Each bank seems to charge a different rate of interest. When we negotiate the bank lowers the rate. What is your opinion?

Uneducated farmers who visit the bank are not treated with respect. If a businessman visits the bank they are treated with respect. What is your response?

Regards,
Shweta
 

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editorialteam

Well-Known Member
Mr. H.K. Prakash, Founder, HK Global Enterprise says-

It is right. That is the reason we need to be aware of available source and value.

Uneducated farmers who visit the bank are not treated with respect. If a businessman visits the bank they are treated with respect… No. It is not so. Nowadays banks are also doing good work.

HK Global Enterprise
450, 1ST MAIN ROAD, SOWMYA KALI NAGAR, ANDRAHALLI,
NEAR PEENYA 2ND STAGE,
Bengaluru - 560058, Karnataka, India
Mob: 9980400241
Email: jyothiprakashhk@gmail.com
Web: Vermi Compost,Vermi Compost Beds,Vermi Compost Supplier,Trader
 

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editorialteam

Well-Known Member
Dr. N. Barathi, Director, Growmore Biotech says-

We had taken loan from SIPCOT, Chennai for our tissue culture lab establishment. Initially, when we tried with National Banks such as State Bank of India and Indian Bank, we could not succeed in getting loan even after pursuing for one year. It is difficult to go through the Nationalized Banks for tissue culture project. With regard to loan for cultivation of bamboo in India, it is difficult to get loan for precision farming in Bamboo, whereas easy to get loan for traditional farming. It is mainly because of lack of "Scale of Finance" for Bamboo cultivation by precision farming. However, there are few instances where, farmers with good influence have managed to get loan.

You are right Shweta, there is no clarity on interest rate charged by banks for agri and farm loans. This happens mainly because of the classification of farmer and the size of loan and also opinion of the Manager on the farmers’ willingness to repay the loan (rating the farmer). This also changes depending on the loan considered as Project Loan or Agriculture Loan. I agree with you that all banks should have one rate of interest. This does not happen in India. (This is the same case when we convert our dollar into Indian rupee Last week when we received 250 thousand dollars and converted into Indian rupee, there were many variables. RBI Rate Rs.62.24 for one dollar while the rate was low in all nationalized banks, starting from 25 paisa to 125 paisa.) India should get into a single interest rate and the rate should be low for agriculture. The interest rate for tractor for agriculture is higher than interest rates for a car loan.

I also do agree with you that uneducated farmers visiting bank are not treated with respect. This is not only to bank, I find everywhere. This is because of the low social value we are giving to the farmer. We rarely find even educated farmer makes the visiting card as "FARMER". I find this in abroad and there the farmers are treated on par. In Maharashtra, farmers are treated better. In fact, in India, farmers are subsidizing the food we eat by taking lower return on Agriculture than a stock broker.


Growmore Biotech
41-B Sipcot, Phase II, HOSUR - 635 109
Tamil Nadu, Phone: 04344 260564, 260565
Email: barathigrowmore@yahoo.com / barathinambi@gmail.com
Web: Plant tissue culture from Growmore Bio-tech Ltd.
 

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shesha12

Member
Hello all,

I am Sheshaprasd,I am planning to start a new cattle farm house in Arsikere taluk,Hassan District.

Can anyone suggest me the approximate cost to make 10-15 cows and the monthly expenditure per cow.
 

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editorialteam

Well-Known Member
Dr. Sandha, CEO says-

Banks are as much confused as the customers are. The bank manager has to watch for the stick from his bosses about the 'safety' of his loan. Entrepreneur is regarded as a 'un-employable' who is going for a business. Government has its plans controlled by persons (aka, KVIC staff) who never ever took risk in their lives. It is only the farmer/ entrepreneur who has to bear the burden of risk (including failure) this has created a sorry situation wherein even the MBA pass-outs are looking for jobs and not going for entrepreneurships.

Bank manager looks at every one by how he can fit into his plans of meeting targets: loans, KCC or whatever. Let us understand the rural branch manager is most likely on a 'punishment' or ' tenure' posting, (else he would have wanted to be in a city).


Jagriti-e-sewa
1116, Urban Estate Phase II
Jalandhar 144002
Mob: 9216888830
Email: jsandha@jagriti.com /
 

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editorialteam

Well-Known Member
Mr. Balasubramaniam, Proprietor, Sai Raghav Farms says-

I have not taken any farming loan but it is very difficult to manage your operational expenses if you don’t have sufficient backup or you need to generate some funds from your farm until you achieve your break even.

There is no clarity on the interest rate charges by banks to farm and agri loans. - Yes, you are right and it differs in each bank. We should have proper planning and be able to present it to the banker which will assure the bank that you will not default. Also the way you approach makes a huge difference in getting the better interest rates.

This is true even educated famers are sometimes treated badly. But we do have bankers who are very cooperative and helpful. But agriculture is always second to any other business which is true and we need to change that. We need to prove them wrong by not failing in our repayments and we need to get knowledge about the schemes available for farmers. Farming community should be more united and start sharing knowledge which is lacking today.

Sai Raghav Farms
Dodaballapur, Karnataka
Mob: 8722234777
Email: sairaghavfarms@gmail.com
 

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editorialteam

Well-Known Member
Mr. Vasant Rao, Director, HPL Global Services Pvt Ltd says-

The rates offered by Banks are based on the Government and RBI directives from time to time. The overall control on refinance of the loans extended by Banks vests with NABARD. The interest rates are fixed based on the risk perception both in regard to the crop as well as the borrower. Also, the overall risk relating to the growing of the produce, market price, etc. are considered by Banks before extending credit. The best way for a farmer to approach a Bank is through a SHG or cluster thus minimizing the credit risk both the lender and borrower. Banks would be most happy to extend loans to farmers in cluster or SHG basis.

As an ex-banker, I do not agree with this opinion that ' a farmer is not treated properly' which I know generally exists amongst all those who approach the bank. The main reason for this perception is that the uneducated farmer feels very insecure when he approaches the banker largely due to his lack of knowledge of banking procedures. He therefore, feels intimidated by the atmosphere prevailing in the Bank. For this reason, high priority is required to be given to educating the farmers on the govt. policies and programs which he can fruitfully avail of. Agriculture is a very lucrative business if followed wisely.

HPL Global Services Pvt Ltd

Plot #1B, 2nd Floor, Babu Jegan Street, Kannan Bala Nagar, Arumbakkam

Chennai 600106.

Mob: 95660 22799

Email: vsrao@hplconsulting.com / raovasa@gmail.com
 

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editorialteam

Well-Known Member
Mr. Kunal Soni, Director, Greenfield Agro Forestry Products says -

As far as I know private banks are far better than government banks in term of behavior. Government banks in some branches treat their customer as if the bank is customer of their own customer, and sometimes even worse. But that’s not the case everywhere. A coin always has two sides, while behavior of bank staff gets worse with less literate customer, similarly annoying questions increases with decreasing literacy of customer. Although, it is the job of the bank employees to help their customer, we should not forget these people are one of us, and react in similar fashion. While long day with annoying questions irritate them, doing job for months in such conditions change their behavior. We should not forget bank is just an organization made out of people, but I will suggest forcing bank employees from their higher officials to behave similarly with illiterate and literate customers could help a lot.

Greenfield Agro Forestry Products‎
A 1-2, Royal palace, Shahi naka road, Sanjeevani Nagar,
Jabalpur MP – 482003
Ph: +91 761 404 9990
Mob: 7566688042
Email: kunal.soni@greenfieldagroforestry.com
Web: GreenField Agro Forestry Products
 

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editorialteam

Well-Known Member
Mr. Anil Patil, Chief Consultant says -

RBI has made it free for the banks to charge ROI as per their base rate. However the variation is very small. Banks do not negotiate or you cannot make any bargain with exception of very large industrial houses. Framers can be rest assured that ROI is generally normal and farmer has to approach only locally available bank and hence has no choice. But I would rather say he should concentrate on large production or higher yields. Economies of scale help a lot for success and profitability.

This is definitely a wrong idea. To be acceptable you should demonstrate professionalism even if you are uneducated. I know of 7th standard passed farmers taking loans of 2 crores in very simple crop cultivation projects. If you ask businessmen they will say farmers are pampered with easy loans, write off, more subsidies etc., I would rather say concentrate on your work, present the proposal smartly and show proven record. More than anything build relationship and be humble. Anybody will melt for this mantra.

A. S. Patil
307, 14th cross, 2nd block, Jayanagar
Bangalore 560011
Mob: 9448028970
Email: anil1956@hotmail.com
Web: Agro Consultants | Commercial Vegetable Farming | Horticulture Projects India
 

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editorialteam

Well-Known Member
Prof. (Dr.) Vishal Nath, Director, NRC on Litchi says-

It should not be. There should be a clear-cut and commodity based uniform policy for each and every enterprise and the growers should be known to it for their access to such loans.

Prof. (Dr.) Vishal Nath, Director, NRC on Litchi, Muzaffarpur

National Research Centre on Litchi

(Indian Council of Agriculture Research,

Ministry of Agriculture, Govt. of India )

Mushahari, Muzaffarpur, Bihar-842002

Contact: 0621-2289375 (Director), 0621-2251160 (Admn. Officer)

Email: nrclitchi@yahoo.co.in, director@nrclitchi.org ,
 

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editorialteam

Well-Known Member
Prof. (Dr.) Vishal Nath, Director, NRC on Litchi says-

I do not think so, however, each and every citizen of the Country who want to avail such opportunity should be treated equal. The greatest credential of uneducated farmers is that he/she is working to produce food for entire nation and they must be given equal opportunity and treatment.

Prof. (Dr.) Vishal Nath, Director, NRC on Litchi, Muzaffarpur

National Research Centre on Litchi

(Indian Council of Agriculture Research,

Ministry of Agriculture, Govt. of India )

Mushahari, Muzaffarpur, Bihar-842002

Contact: 0621-2289375 (Director), 0621-2251160 (Admn. Officer)

Email: nrclitchi@yahoo.co.in, director@nrclitchi.org ,
 

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guargum

Established Member
Dear Shweta,

very good discussion topic.

Govt started the KCC ( Kisan Credit Card ), it was very good scheme and linked with the land mortgage. The farmer get loan at very low interest, it is around 6 %, some state govt give subsidy of 1 % or 2%. farmer also get some timely repayment bonus. the timely repayment also increase the credit limit of farmer. IF the repayment schedule of farmer is good then he will not face any problem in loan.
 

G

guargum

Established Member
but when come to the high tech agriculture. it need investment, for the said investment there must be performance track record of the farmer. If he has successfully completed his last assignments then he must be given more loan.
 

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editorialteam

Well-Known Member
Mr. Nallamuthu, Founder, Thumba Agro Technologies says-

However they roam, the world must follow still the plougher's team; though toilsome, culture of the ground as noblest toil esteem

Explanation:-

Agriculture, though laborious, is the most excellent (form of labor); for people, though they go about (in search of various employments), have at last to resort to the farmer.

- Decide Yourself.

- Thirukkural

- Thirukural in Tamil, English and Transliteration

Thumba Agro Technologies

37-A, Rajendra Road,

Palani - 624 601

Dindigul District

Tamil Nadu, India

Mob: 98433 35703

Email: info@thumbagrotech.com

Web: Home | Raingun Irrigation System | Sprinkler Irrigation System | Solar Power Sprayer | Dairy Dung Cleaning Pump | Solar Home UPS System | Thumba Agro Technologies
 

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editorialteam

Well-Known Member
]Mr. Nallamuthu, Founder, Thumba Agro Technologies says-

“A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.”

If this does not happen, then Banks forget their vision.

Thumba Agro Technologies

37-A, Rajendra Road,

Palani - 624 601

Dindigul District

Tamil Nadu, India

Mob: 98433 35703

Email: info@thumbagrotech.com

Web: Home | Raingun Irrigation System | Sprinkler Irrigation System | Solar Power Sprayer | Dairy Dung Cleaning Pump | Solar Home UPS System | Thumba Agro Technologies
 

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editorialteam

Well-Known Member
Mr. Pranay Mehta, partner. says-

That is the way Indian Banks are. The staff needs to be taught to treat each customer in the same way.

Mr. Pranay Mehta

88 shanitnagar

Sirohi, Rajastha, 307001

Mob: 90993 39698

Email: pranay.v.mehta@gmail.com
 

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