Agricultural Loan Sample Calculation

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It is possible for farmers who want to use loans through Good Credit Bank to do this without interest up to a certain limit, which varies according to the production subject. With the decision of the Council of Ministers, for the higher limit of these loans, which are allocated as zero interest in order to support farmers, fixed interest advantage can be used and long-term borrowings can be made with flexible payment options. In this context, it will be useful to mention some details about the Good Credit Bank agricultural loan sample calculation and payment plan .

How to Get Good Credit Bank Agricultural Support Loan

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The documents that producers who want to take advantage of the flexible payment plan agricultural loan facility allocated through Good Credit Bank must provide:

  • Birth certificate,
  • Farmer registration certificate,
  • Land registry, rental agreement, etc. that will register the agricultural enterprise. documents
  • A document confirming the ownership of the guarantees to be given as equivalent to the loan amount.

Producers who provide these documents can go to the nearest Good Credit Bank branch and make a request for an agricultural support loan. Applications made are evaluated within a short time and an allocation is made based on the verification of accuracy.

What are the Support Quantities?

How much interest rate cuts by Good Credit Bank to what amount is documented by the decision of the Council of Ministers. In this context, below is the table showing how much interest rate cuts producers will benefit from, depending on which activity subject. It is necessary to examine the table in detail and determine the subject of production well.

Do Different Institutions Give Credit?

Do Different Institutions Give Credit?

Only Good Credit Bank was authorized for this loan allocated through Good Credit Bank. Agricultural Credit Cooperatives, Agricultural and Rural Development Support Institution’s projects such as IPARD are other support programs and are not within the framework of this credit program.

In order to request related credit products, it is necessary to meet with these institutions separately. Good Credit Bank’s only duty is allocated for the loans to be allocated after the meeting with these institutions. In other words, it delivers the payment to the consumer for the approved application, but the necessary examination will be made by the institution itself.

Good Credit Bank Credit Calculation and Sample Payment Plan

Good Credit Bank has kept the payments required for this support program flexible. In other words, consumers can request a payment plan in a way that will best suit their harvest periods, and choose how many months they will pay their debts in installments. Therefore, it is not possible to make a single calculation and say that it is valid for every situation, but for a producer who draws 100 thousand USD for domestic certified seed, seedling and sapling use:

  • 8333 USD every month for a 12-month term,
  • 4166 USD per month for 24 months maturity,
  • 2777 USD per month for 36 months maturity,
  • 2083 USD per month for a 48-month term,
  • He will have to pay 1666 USD each month for a 60-month term.

The total principal debt will be 100 thousand USD regardless of the term of payment because 100% interest discount is applied to the producers who draw credit to use domestic certified seeds, seedlings, and saplings up to 100 thousand USD, that is, interest-free loans are allocated.

Agricultural Credit Conditions

Agricultural Credit Conditions

In order to take advantage of the agricultural loan, it is necessary to be already engaged in agricultural activities. Therefore, this loan product is not suitable for entrepreneurs who will start agriculture, it is recommended that entrepreneurs in this group turn to the support allocated through ARDSI or Agricultural Credit Cooperatives. Manufacturers who will benefit from this loan:

  • To be able to provide collateral worth as much as the loan amount,
  • Having a CCS record,
  • Earning income,
  • To find a guarantor,
  • It is expected to meet the special conditions that may be required by the Good Credit Bank Branch.

Cooperatives Wanting to Use Loans

If this loan product will be used as a cooperative, the interest rates and supports in Table 1 apply. How much credit will be allocated to cooperatives will be determined by looking at the production capacity and compatible sizes.

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