The 21st century gave birth to global agrarian economy. For many people, the term agriculture means only working on the field and growing crops. This is a limited meaning of the term agriculture. In reality, the term agriculture includes many other streams and segments.
A key segment of agriculture is animal husbandry. Animal husbandry refers to the raising and selective breeding of livestock. The farmer, in this case, the person taking care of the animals uses the farm animals for the supply of milk, meat, eggs, wool, hides.
Farmers all over the globe is associated with animal husbandry. these farmers are most times in some financial difficulties and needed funds to finance their animal husbandry and livestock projects. In order to support these farmers and to ensure that they get timely access to funds, Government has initiated many welfare schemes. Apart from these schemes, there are many lenders that provide specific loans for animal husbandry.
If you are a famer and you need funding to finance a Large animal husbandry projects, Havelet Finance Limited is ready to help any individuals or companies with a 100% financing.
Qualification For Animal Husbandry Loan
Financing and Animal Husbandry loans are different from Agricultural loans provided by the lenders and these loans are a popular loan segment under this category and have been used by many farmers across the country to ensure a steady profession.
Every lender has its own unique set of eligibility guidelines that are to be met by the applicants to be eligible for animal husbandry loans. Some of the common eligibility criteria for animal husbandry loans are mentioned below.
The eligible applicants are any of the following entities,
- Dairy/ poultry farmers
- Individual or joint borrowers (including tenant farmers)
- Joint Liability Groups (JLG)
- Self Help Groups (SHG)
- Private companies
- Farmer Producer Organizations
- Section 8 companies
Features of Animal Husbandry loans
animal husbandry loans are provided to assist financial help to the farmers in their spheres of specialization. The features of the loans provided by the lenders are different based on their guidelines. Some of the common features of these loans are provided hereunder.
Quantum of loan: The loan amount given by lenders depends on the credit profile of the applicant and the guidelines of the lender. Usually, the loan amount ranges from 75% to 100% of the cost of asset or project cost.
Tenure of loan: Animal husbandry loans are long term loans with an average tenure of 7 years to 10 years. These loans can be repaid in easy and flexible EMIs as per the arrangement between the lender and the borrower.
Rate of Interest: The rate of interest is another important factor to be reviewed by the applicants. The rate of interest is usually between 7%to 12% per annum. The rate of interest is dependent on the amount of loan, credit profile of the applicant and the lender’s cost of lending.
Processing Fees: Processing charges are the nominal charges that are levied by the lender in relation to the sanction of the loan. The maximum processing charges are usually up to 5% of the loan amount approximately. These charges are based on the amount of loan and are subject to minimum and maximum charges as per the bank’s guidelines.
Part-payment and Foreclosure of loan: Lenders allow the borrowers to prepay or partly pay the loan based on certain restrictions like completion of minimum EMIs. These part payments and the foreclosure are subject to certain penalties ranging from 2% to 5% of the outstanding loan amount or the amount prepaid depending on the bank’s guidelines.
Documents Required for the Animal Husbandry Loan
Documents required by lenders varies. Most lenders may require the applicants to meet all the eligibility parameters set by them as well as submit the relevant documents that support their eligibility. The usual set of documents required by lenders is the KYC documents. Some of such documents are mentioned below.
Identity proof: The applicant can submit any of the following documents as identity proof as International Passport Photo or Any valid ID.
Address proof: Following documents can be used as address proof.
- utility bills
- bank statements
- Sales Tax Certificate
- Trade License
- Rent agreement or house deed, etc.
Source of Funding for Animal Husbandry Loan
Short term/Production Loans: This loan option is designed to make provision for inputs which are of seasonal nature. The loan option is repayable at the end of each production season, which is up to a maximum of 18 for most businesses or 24 months for sugar cane or timber establishment wholesale receivables finance.
Medium-Term Loans This loan option is designed in the form of cash credit accounts to finance livestock, perennial crop, and irrigation equipment and for other working capital purposes.
The repayment under this option is negotiable, and is normally between three to eight years.
Long-Term Loans: This loan option is designed to acquire capital expenditure such as the purchase of land, purchase and the installation of machinery and equipment, fixed assets improvements and any other agricultural related expenditure.
The repayment terms under this option is negotiable between periods of three and twenty-five. years.
Instalment Sale Finance (ISF) The main purpose of this loan option is to finance moveable assets such as identifiable farming assets and equipment. The asset purchase forms the primary collateral in this regard, and the Land Bank remains the titleholder of the purchased asset until the asset is fully repaid.
Establishment Loans: Bank provides loans to farmers for the establishment of perennial crops, such as sugar cane plantations, citrus and deciduous fruit orchards, timber wood plantations and vineyards.
Large Livestock Finance: This option offers an opportunity to purchase livestock, and is aimed at the establishing of herds and extensive beef production. This loan is similar to the medium term option and offers farmers an opportunity to trade existing livestock as collateral.
Contact Havelet Finance Limited for all ready shoveled ready Animal Husbandry projects .
Our Service Includes;
• Loans in euros or other currencies at the request of the client.
• The maximum amount of financing is up to 100% of the investment cost.
• Corporate refinancing of both operating and under construction enterprises.
• Long term and flexible payment schedule