In Russia, insufficient attention has been paid to the agricultural sector for a long time. Only recently has the government decided to provide more support to this area in an effort to increase agricultural production.
To solve current problems, the state has made several decisions aimed at stimulating the revival of this segment of the country's industry.
New programs should provide support to domestic farmers; they are aimed at strengthening their activities. Preferential lending to agriculture is one of the most effective tools for implementing these programs.
There are several types of soft loans. Some loans can be issued for 1-2 years to cover seasonal events. Others are designed for longer periods (up to 5 years) for various agricultural needs.
Such lending is considered targeted and is issued for the purchase of necessary equipment, machinery, feed, fertilizers, seedlings, farm animals, etc.
Banks are ready to provide more favorable conditions to beginning farmers - investment loans issued for long periods.
Preferential loans for agriculture are divided into 4 types:
- Secured by equipment.
- For the development of personal subsidiary plots (LPH).
- Under the area of land for agricultural purposes.
- Loan secured by harvest.
To gain access to preferential lending, the borrower must have the status of a small or medium-sized business. The condition of many banks is a down payment of about 20% of the loan amount. Sometimes they require 10%, but no less.
An enterprise involved in agriculture or a consumer cooperative can apply for this type of loan. Loan approval is possible for companies that have at least 5 qualified employees and administration on their staff.
The owner of a personal subsidiary plot can also count on a preferential loan. But in such cases, the return period is not long (up to 2 years).
The size of the loan to farmers depends on their income; usually lenders give up to 300 thousand rubles in such cases. It is often practiced to repay the loan amount in installments depending on the seasonality of the work.
A private person's collateral can be real estate and movable property. The role of guarantor (if necessary) can be an individual or legal entity.
If the loan size is small (up to 50 thousand rubles), collateral is not required, especially if the owner of the private household plot has recommendations from the local administration.
Banks engaged in preferential lending to agriculture in Russia:
- Rosselkhozbank is a specialized lender and offers farmers the most favorable conditions at present. The bank issues loans for all needs of the agricultural industry: equipment, workers, livestock, etc. The owner of a private household plot from Rosselkhozbank can receive a loan at 14% per annum.
- Agroros provides loans secured by agricultural land on preferential terms. For 1 year - at 14% per annum, for a longer period - at 15%.
- Sberbank provides agricultural representatives with a loan secured by the future harvest. The loan period is 1 year. The purpose of the loan is the purchase of equipment, seeds, fertilizers or carrying out planned seasonal work.
- Binbank has a “Business Season” program designed specifically for farmers. The annual rate on it is 14%.
- AK Bars Bank lends money for a period of 2 to 5 years, depending on the goals of the agricultural business. The rate is 14%, the loan amount is up to 700 thousand rubles.
Targeted programs for Russian farmers are distinguished by more favorable conditions and a reduced rate for using a loan.
Preferential lending to agriculture is a simple and profitable way of development not only for large agricultural enterprises, but for owners of small subsidiary plots.
Over the past few years, in connection with the import substitution policy, the state has been actively supporting the development of agriculture in the country. Banks also picked up this trend, issuing specialized loans for the development of farming. You can get a loan for agriculture from Rosselkhozbank on the most favorable terms, because it is one of the leading banks in this area.
Features of a loan for the development of personal subsidiary farming at Rosselkhozbank
State support for agriculture led to a reduction in interest rates on loans with a specific purpose. Thus, a loan for the development of personal subsidiary farming implies loyal conditions for farmers and owners of subsidiary plots. It is presented in three types:
- with security for agribusiness owners;
- without security (without collateral or guarantors);
- restructuring of loans for subsistence farmers.
The peculiarity of obtaining such a profitable loan is its targeted orientation. You can apply for a loan only for specific actions that will be specified in the contract (purchase of equipment, grain, etc.). Moreover, the bank has the right to require documentary evidence of the expenditure of the money received.
Lending purposes
There are several targeted options for obtaining an agricultural loan, differing in terms and conditions.
Lending for a temporary period of up to 2 years is carried out for the following purposes:
The loan is provided for a period of 3 months to 5 years in an amount of up to 1,500,000 rubles. Typically, the largest amounts are approved only for regular customers who have earned the trust of the bank through past cooperation or a good credit history. Money is issued exclusively in rubles.
Basic loan terms:
- lending for a period from 2 to 5 years;
- presence of a guarantor (individual or company) and/or collateral;
- differentiated payments are possible, but in the absence of subsidies, only annuity payments are provided;
- grace period of up to a year if the loan is issued for a short term, up to 2 years for a medium-term one;
- standard rate is 13% (for a period of up to a year) and 15.5% (from a year).
There are also discounts and penalties in the form of additional interest. People who boast a good credit history are highly regarded by the bank and are given a discount of 0.5% on the base rate. As penalties for violating the terms of annual life insurance, the rate increases by 6%. If the client refuses to provide documentation containing information about the purpose of the loan, the rate increases by 2.5%.
The loan application is processed within 7 working days. The entire amount is transferred one-time to the details provided by the borrower within 45 calendar days after approval. There are no additional payments or commissions for the procedure. Payments are made monthly.
In order to receive more detailed conditions and a complete list of documents required for receipt, to leave an application for consideration, you need to contact directly the bank branch where you plan to submit it.
Requirements for borrowers
A loan for the development of private household plots in Rosselkhozbank is issued only to citizens of the Russian Federation who fully comply with the following list of requirements:
- Age restrictions. The minimum age at which a loan can be issued is 23 years. Citizens under the age of 75 can apply for it; for guarantors, this age is only 65 years.
- If the client is an individual, then his time of work in his current place must be more than six months. Full work experience must be more than 5 years.
- Permanent registration in the Russian Federation.
If the borrower receives a salary from Rosselkhozbank, then the minimum length of service at the current place drops to 3 months, and the total length of service to six months. If the borrower is a pensioner and receives a pension from Rosselkhozbank, the requirement for total length of service does not apply to him. If the applicant is running a private household plot, the period of his activity must be at least 1 year.
Income may be funds received from the following sources or as a result of the following activities:
- income that the borrower receives from his main job or part-time job;
- profit from the results of entrepreneurial activity, intellectual work (royals for books, manuscripts, articles, etc.);
- profit from running private household plots;
- pension;
- profit from the rental of real estate.
All income not reflected in personal income tax certificates must be confirmed by other official documents.
Required documents
In order for the lender to consider the application and increase the chances of a positive decision, you need to collect the following documents:
- Certificate of income in the form of a bank;
- Extract from the household ledger;
- Application in the form of a questionnaire for the main borrower, co-borrowers and guarantors (if any);
- Personal subsidiary plot agreement;
- Attachment to the application with the provision of personal data.
By signing the agreement, the borrower undertakes to provide the bank with reports on target costs in the form of the following documents:
- All payment documents that reflect the purchase and sale of goods and services for the intended purpose (invoices, invoices).
- Checks and cash receipts confirmed by the company seal.
- If a product or service was purchased from an individual – acts of acceptance and transfer of goods.
- If you take out a loan for the purpose of purchasing mechanical equipment, you must provide the original PTS, an agreement for the purchase of equipment, and an acceptance certificate.
- If the loan is intended for construction or renovation of premises, it is necessary to provide a certificate of ownership and all available accounting documents.
This list is not exhaustive, because Each transaction has an individual character. The bank may require additional information to confirm the client’s solvency and other information relevant to approving the application. A complete list of documents can be obtained from a lending specialist at any branch.
Features of servicing a loan for the development of private household plots
Monthly payment of the loan fee is possible in cash or by bank transfer. You can top up your account without commission using one of the following methods:
- cash through a cash register or self-service terminals;
- using a payment card issued to the borrower’s bank account, through a cash register or self-service terminals;
- by transferring funds from any other account opened with Rosselkhozbank, including using a debit card.
If payment is made in foreign currency, it is converted according to the rate set by the bank directly on the day of payment.
If the client violates the terms of the contract, namely in case of failure to fulfill the obligations assigned to him, penalties will be applied. If no agreement is reached between the parties, the dispute is referred to the court.
Full consultation can be obtained at any bank branch, where you can also leave an application, receive a list of documents and guidelines for action.
Agricultural loans are popular with farmers who need to do seasonal work or purchase some equipment. This money can also be spent on purchasing seeds, repairing machines for cultivating the land, purchasing spare parts, purchasing livestock of young animals, etc.
Processing times can be up to 5 years, everything will depend on the goal and the amount the farmer wants to receive. Many banks issue loans for agricultural development from scratch; the main thing is to study the requirements for a potential borrower and prepare a package of documents.
The client collects certificates confirming his level of solvency, as when applying for a consumer loan. But there are some nuances that you need to know and which will be discussed further.
How to use such a loan?
Before taking out a loan for agricultural development, the borrower needs to clarify what package of documents he will need. If you have property that will act as collateral, all the documents for doing business and a stable income, there will be no problems with obtaining it.
It is important to decide on the amount in advance; usually banks easily issue money for a period of up to 5 years to owners of subsidiary plots and for a period of up to 8 years to owners of farms and cooperatives.
If the borrower is already of retirement age, then a prerequisite for obtaining a loan is the presence of a guarantor (perhaps one of the relatives) who will provide assistance in running the household.
Useful material:
Features of the loan
All loans for agriculture can be divided into several groups:
- issued against the security of equipment;
- loans secured by crops;
- loans for the development of your own subsidiary plot;
- loans secured by agricultural land.
For many banks, the condition for receiving money is the need to make 10 to 20% of the amount as a down payment. The status of a small or medium-sized business is another prerequisite for loans for agricultural development.
Required package of documents
You need to prepare the following papers:
- statement;
- recommendation from the city or rural administration;
- a certificate in form 2-NDFL from the entrepreneur’s place of work or a certificate of receipt of profit from running his own household;
- for borrowers of retirement age - a certificate of pension amount;
- in situations where the desired amount is less than 300 thousand rubles, a guarantor is required. If you need more, you will have to involve two guarantors at once.
An important point - according to the experience of farmers, it is best to take out a loan immediately before spending it. Within three months after receiving the money, you will need to provide the bank with a certificate confirming the intended use of the funds. This way you can calmly spend your money and then collect the necessary papers.
Requirements for applicants
In general, the conditions for farmers are quite favorable, but bank borrowers must still meet a number of criteria: farmers and those engaged in private farming can take out a loan for farm development.
Beginning workers will need to provide a complete business plan, which will be carefully analyzed, the bank will be convinced of the feasibility of the undertaking and will issue them an investment loan.
Potential borrowers are not allowed to have debts to the tax service or contributions to the Pension Fund. The farm must be profitable over a long period of time and in no case be unprofitable.
Typically, the conditions for obtaining a loan are as follows:
- Loan terms are 3-5 years. You can get on average 150-300 thousand rubles;
- The application is processed in approximately 5-7 working days, the waiting time will depend on the completeness of filling out the application form and the availability of all necessary documents;
- It is almost always possible to pay off your debt early without having to pay penalties or fees.
Requirements are also set for the staff; at least 5 specialists must work on the farm, whose qualifications are confirmed by the presence of diplomas or certificates. At least a quarter of the desired amount of money must already be available.
An agricultural loan can only be obtained by an able-bodied borrower who has the ability to attract guarantors or provide collateral - this increases the bank’s loyalty. Most often, real estate plays the role of collateral, but agricultural machinery is also quite suitable.
Is it possible to use benefits?
In some regions, borrowers have the opportunity to obtain a loan for agricultural development under a state program. These loans have lower interest rates and less stringent terms and conditions.
This is an excellent solution for owners of small farms who are just trying to get on their feet, and for large enterprises.
The largest number of loans under this program is issued, and there is a tendency to increase their number. The interest rate usually ranges from 15 to 18%, but it is planned to launch a subsidy program that will allow it to be reduced somewhat.
The state agricultural lending program was launched back in 2008, since then about 1 trillion has been issued to all those in need. rubles
Afterword
You can try to get a loan for current purposes. This is a short-term loan, which is issued for a year or a year and a half, if, according to the borrower’s project, the technological cycle of product production may be slightly delayed.
With this seasonal money, farmers can purchase seeds, feed or combustible materials, as well as pay the cost of renting a plot of land. Here, too, you will need to provide collateral or guarantors; you can take out a loan secured by the future harvest.
In general, the borrower should not have any difficulties. You can clarify any points of interest with a bank consultant at any time and prepare in advance for applying for a loan in order to be sure to receive approval.
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Rosselkhozbank is one of the most sought-after and popular banks, which provides various types and forms of lending to citizens for targeted and non-targeted needs. You can also take it, but this type of lending requires completely different conditions. To develop personal farming, Rosselkhozbank is also ready to issue a loan with government support at a low interest rate.
Loan for the development of personal subsidiary plots
In order to open your own business, you need to find or come up with an original business idea and find out. Suitable or . Any can also be easily adapted to local conditions, for example, or. But in order to receive a loan for the development of a personal subsidiary plot from the Russian Agricultural Bank, it is necessary that your idea for private household plots fits one of the following expense categories:
- Purchase of fuels and lubricants;
- Purchase of young farm animals;
- Purchase of protective equipment and mineral fertilizers for agricultural plants;
- Payment of electricity;
- Payment of rent for land and premises required in your private household plot;
- Purchase of building materials;
- Various seasonal expenses and expenses.
A loan for these expenses is provided for a period of up to 2 years, but you can get a loan for up to 5 years if larger expenses are planned:
- Purchase of adult farm animals;
- Repair and construction of livestock buildings and pens;
- Purchase of agricultural equipment for livestock farming;
- Purchase of equipment for connecting gas installations;
- Purchase of land for various agricultural needs for personal use;
- Other expenses are average.
You can get a loan from Rosselkhozbank not only for agricultural development. If a citizen of the Russian Federation lives in a rural area, then he can receive money for up to 5 years and for the following types of business:
- Tourism development;
- Development of folk crafts;
- Development of trade;
- Household services for rural residents;
- Procurement of various fruits and berries, herbs and medicinal plants.
The purchase of large agricultural machinery is also possible with the help of credit money from Rosselkhozbank, issued for a period of up to 5 years:
- Cars, dump trucks and others (weighing no more than 3.5 tons);
- Tractors with power up to 100 horsepower;
- Irrigation equipment;
- Tractor trailers;
- Equipment for agricultural processing.
Advice: Before taking out any loan, draw up a business plan for running your subsidiary farm, as well as a list of necessary expenses. In addition, it would be useful to subsequently maintain statistics of expenses and income. This way you will facilitate the process of obtaining the required loan amount with convenient terms for its repayment, get a more objective picture of managing your private household plot and will always be aware of how much money has been spent and how much more is needed for certain needs.
Loan for the development of personal subsidiary farming at Rosselkhozbank - conditions
For the most reliable and regular clients, Rosselkhozbank offers very favorable conditions, but even on general terms, the borrower can count on a cash loan with a minimum period of 3 months and a maximum amount of 1 million rubles (for reliable clients, the amount increases by 500 thousand rubles). In addition, it is necessary to maintain some security for the loan, namely a guarantee from at least one individual and at least one legal entity. Plus, if you want to purchase equipment, you may also need a property deposit. In this case, the bank can combine these conditions at its discretion.
How to get a loan from Rosselkhozbank for private household plots?
So, in order to get a loan from Rosselkhozbank for the development of a personal subsidiary plot, it is enough to have a business idea, determine your expenses so that they fit one of the categories above, and also provide at least two guarantors.
Primary requirements
The borrower must be at least 23 years old and have citizenship of the Russian Federation. The maximum age of the borrower is 75 years at the time of loan repayment and 65 years for the guarantor. Work experience varies depending on the borrower's employment status. If he is a client receiving wages into the account of Rosselkhozbank, his work experience must be at least 3 months at his last place of work, for other clients - at least 6. The potential borrower must have at least 12 months of experience running a personal subsidiary plot with entries in the household book of local governments.
Procedure for granting a loan
In order to receive the required loan amount, you will need to visit the bank office with a certain package of documents and write an application. The application is reviewed by the bank within 5 working days, and after approval, the potential borrower has a period of 45 days to obtain a loan. The bank transfers the loan money to the account of the borrower, who will have to make monthly differentiated or annuity payments (only for an unsubsidized loan). The bank provides the opportunity for full or partial early repayment.
Required package of documents
If you paid for goods and services by bank transfer, then within 90 calendar days from the date of receipt of the loan you must provide the bank with original documents, invoices and invoices, and if paying in cash - original checks certified by a seal. During the same period, it is necessary to provide documents for the purchase of goods and services privately from individuals.
When purchasing equipment, within 75 calendar days you will need to provide a vehicle passport, an act of its transfer, and a document confirming the registration of the right of pledge with Gostekhnadzor.
When connecting gas equipment within 180 calendar days, you will need to provide documents on expenses and a certificate of ownership of the premises.
In addition, you may need an additional set of documents confirming the conduct or termination of activities in agriculture as an individual entrepreneur - the head of a peasant farm (peasant farm).
In addition to the list, you must provide a passport, a loan application form, a statement of economic activity and a certificate of income.
Interest rates
If you are getting a loan for up to 12 months for the first time, your interest rate will be from 16.5%. If you fall under the category of reliable clients, you can count on a rate of 14.9%. For a period of 12 to 60 months, there is an offer at a rate of 16.5% for new clients and 15.5% for reliable ones. If you violate the conditions for providing documents confirming the target direction of the loan, Rosselkhozbank may increase the interest rate by 2.5%. If you refuse to insure life and health in accordance with the terms of the loan for private household plots and the conditions of the insurance company, you should expect an automatic increase in the interest rate by 4.5-5%.
Advice: very often clients tend to refuse life and health insurance when applying for a loan and in some ways they turn out to be right. Indeed, often even with all the commissions and increases in the loan rate, the borrower's payments are expected to be less than together with insurance payments. However, if you plan to repay your loan early, it is better to agree to insurance, because if you repay early, you can get your money back by submitting a written application to the insurance company.
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The government of the Russian Federation today is trying in every possible way to support rural residents and the development of agriculture. In particular, the state is ready to subsidize part of the loan for the costs of developing the personal subsidiary plot of any Russian citizen living in a rural area and ready to seriously take up this type of activity. At the same time, Rosselkhozbank offers a loan for the development of private household plots on favorable terms, a relatively small package of documents, a favorable interest rate and a loan term of up to 5 years.
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Currently, agriculture is intended to become one of the main directions of state policy. In this regard, individuals, as well as organizations that are interested in its development, are provided with certain support measures. The article will tell you how an individual can get a loan for agricultural development.
Features of loans for the development of subsidiary farming
Obtaining and launching such loans has a number of features:
- Intended use of the loan. The specific list of purposes for loans for the development of private household plots is quite wide. The main ones are:
- purchase of seeds, planting material, fertilizers or plant protection products;
- purchase of animals for agriculture;
- payment for electricity used for irrigation;
- acquisition or payment of rent of land, as well as premises that are used in the development of the economy;
- purchase of equipment used for processing agricultural products or for livestock breeding;
- expenses for the development of tourism business in rural areas;
- purchase of cars, tractors, fuels and lubricants, etc.
2. Selecting the period during which benefits for repaying the principal debt will apply. This is due to the fact that many areas of agriculture have a pronounced seasonal nature. This feature predetermines the receipt of the main profit from the development of the economy in future periods.
3. Paying a smaller amount of own funds (compared to standard programs) when receiving a loan for the purchase of machinery or equipment.
4. State subsidization of part of the interest rate. This support may vary depending on the sectors of agriculture, the direction of use of funds and other factors. However, in any case, the government subsidy significantly reduces the cost of the loan.
In the event that physical a person intends to receive a loan for the development of a farm, the requirements for it will differ slightly from the standard conditions.
Firstly, most bank loan programs in this case provide for the provision of collateral. Most often it is a guarantee from an individual/legal entity or a pledge of property. If the purpose of the loan is to purchase machinery or equipment, then they act as collateral for a loan for production development.
Secondly, when analyzing the financial condition, not only income received from the development of private household plots is taken into account, but also all other income (at the place of work, which is the main one; from activities as an entrepreneur, etc.)
Thirdly, the presence of private household plots must be confirmed by an extract from the household register. As a rule, banks require records to show that the business has been in business for at least one year.
Fourthly, the borrower must confirm the availability of the necessary land and equipment.
Example: receiving a loan from Rosselkhozbank for the development of private household plots
The leader in providing loans for agriculture is Rosselkhozbank. It currently provides two qualifying personal loan programs. persons * – “For the development of personal subsidiary plots” and “For the development of personal subsidiary plots without security.” Both programs are designed for loans for existing private household plots. The main conditions of Russian Agricultural Bank loans for business development are as follows:
To obtain a loan, the following documents are required:
- Civil passport of the Russian Federation or other document confirming the identity of the borrower.
- Documents confirming settled relations with conscription authorities (for men no older than 27 years).
- Documents confirming the client’s employment.
- Information demonstrating the financial condition of the borrower.
- Documents for the selected collateral provided (for a collateralized program).
- Documents that confirm the right to use the land.
- An extract from the household register, which contains information about personal subsidiary plots.
- Recommendations of regional representative offices of the Association of Peasant (Farm) Farms and Agricultural Cooperatives;
- Recommendations for agricultural needs. cooperatives, etc. organizations;
- Recommendations from city or village administration;
- Certificate of registration with the tax authority.
- Since agricultural lending includes the possibility of subsidizing rates, it is advisable to determine eligibility in advance. For each direction and in each subject of the Russian Federation, the requirements may vary.
- It is necessary to have current entries in the household ledger.
- At the same time as requesting an extract from the household register, it is also advisable to request recommendations from the head of the local administration. This will confirm the significance of the project for which the loan is being requested.
- It is advisable to consider the possibility of establishing a grace period for repayment of principal and (or) interest. This will ensure a low credit burden at the beginning of the project.
- After receiving a loan, it is highly desirable to promptly and fully confirm the intended use of funds. This will allow you to avoid penalties and will not spoil your relationship with the bank.
*Data update date – April 2015.