Traditional lending routes for farmers have been mostly informal, leading to unclear loan terms, exorbitant interest rates and conditions set on the whims and fancies of the lender. This used to put a strain on agriculturalists, who had to agree to unfair loan terms due to the shortage of reliable lending routes.
Thanks to the advent of online loan apps, this scenario has changed. Agriculturalists and farmers can apply loan online, right from the comfort of their homes and get loans for agriculture from reliable financial institutions. Read through the article to know the many ways in which online loan apps are beneficial to agriculturalists.
Usually, farmers either go to local lenders to borrow money or to rural banks. With local lenders, many risks follow and with banks, the application process is too long and complicated. These barriers to loans can discourage agriculturalists from applying for loans completely. This is why online loan apps are important. You just need a phone and an active internet connection. The application process is simple, rapid and requires minimal documentation.
- Attractive Interest Rates
A very alarming problem with local lenders is that they are known to charge exorbitant interest rates to farmers. This can both financially and mentally burden agriculturalists and make it difficult for them to repay the loan. However, with a loan lene wala app, you can find attractive interest rates and even use a loan calculator to understand the amount of loan that you are eligible for. This can help an agriculturalist take a loan according to their repayment capacity and plan their finances accordingly.
- Flexible Repayment Terms
What most agriculturists need is not just attractive interest rates or low fees, but realistic and borrower-friendly repayment policies. Banks usually have very rigid repayment policies, which can be difficult for small-scale farmers to follow. This is where online apps or a krishi loan app come in. They usually have affordable EMI options and longer repayment tenures, which gives a breather to the lender and makes the loan repayment easier, more achievable for them.
- Collateral & Non-Collateral Options
Another amazing thing about loan apps is that they have a variety of loans to offer. If you prefer a collateral loan, you can pledge your gold and get a gold loan based on the purity and weight of your gold, plus the LTV. The lender institution follows the current market rate of gold to calculate the loan amount you might be eligible for.
On the other hand, if you would rather go for an unsecured or a non-collateral loan, you can apply for a business loan with attractive interest rates. Based on your agricultural requirements and other factors, you can choose the one that suits your needs the most.
The advent of online apps has changed the way people borrow. It has made money more readily accessible to people from all walks of life, whether it is a business person wanting to scale their organization or an agriculturalist expanding their production. Online loan apps help by providing a smooth application process, competitive interest rates and flexible repayment terms. Modern agriculturalists can scale their business to new heights by leveraging online loan apps.
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