Tips on Agricultural Loans
In Myanmar, based on agriculture, the main players are farmers. Farmers need strong investments, including agriculture, to develop the country’s economy. Therefore, the government; Banks and private organizations are somehow lending money to farmers. Agricultural loans Input Production; It is a financial service intended to support distribution and wholesalers.
Agricultural loans are divided into short-term, medium-term and long-term loans depending on the term of the loan. Short-term loans from 6 to 15 months depending on loan requirements; Medium-term loans that will last from one and a half to five years; These are long-term loans lasting 5 years or more. Farmers need to understand that there are legal lenders and illegal lenders who provide loans before they can get agricultural loans for their business. The best way to get a loan is to get a good interest rate loan. Banks and government-run official lenders offer both collateral and mortgage loans. It is also classified as a non-mortgage loan.
There are many types of agricultural loans. One of Yoma Bank’s agricultural loans is seasonal loans for paddy, pulses and maize depending on the growing season. The loan term is from 8 to 10 months. The loan term is a maximum of 12 months. Another type of loan is a short-term loan for agricultural receivables and receivables, lasting up to a maximum of 6 months. The interest rate for Yoma Bank’s agricultural loans is 10% interest per annum on collateral and 14.5% per annum on non-collateral.
So what banks need to do to get loans from banks is to systematically record the income and expenditure of their business and prepare financial statements. Another thing is to pay taxes for the business. If you can show the financial statements and tax returns mentioned above, you will be able to get the agricultural loan you need. The modernization of the country’s agricultural sector is to ensure adequate investment for agricultural farmers. Access to agricultural credit is key to the development of the agricultural sector and the adequate investment needed by entrepreneurs. Banks and governments are also providing agricultural loans to help farmers get the support they need, and it is important to anticipate how to get the right type of loan for your business and how to repay it.