Agricultural Loan Calculator

The government applies interest subsidies on agricultural loans. The bank applies the normal interest rate, and the Treasury covers part of the difference. The support rate varies by product type, region, and year. Generally, 50% interest reduction for crop production and up to 100% for livestock.

The grace period is the deferment of principal payments for a certain period after loan disbursement. Only interest is paid during this period. It is an important convenience for farmers who have no cash flow until harvest season. Generally 6-24 months of deferment is offered.

Agricultural land mortgage, agricultural machinery pledge, livestock pledge, crop pledge, farmer registration system (CKS) registration, and guarantees are the most common collateral types. For low amounts, just CKS registration may suffice.