Agricultural Loan Tips: Will the CIBIL score be checked even when taking a loan for farming? know here...

People have many questions in their minds regarding the CIBIL score. Most people believe that banks check CIBIL scores only when taking personal loans or home loans, but this is not the case. Only after taking an agriculture loan, does the bank check the CIBIL score of the farmer before giving the loan. If the CIBIL score of the farmer is 750 or more, then the bank easily gives a loan to the farmer. If the CIBIL score is less than 750, the bank refuses to give loans to the farmers. In such a situation, farmers have to take loans from moneylenders, due to which they end up drowning in debt.

What is the CIBIL score?
CIBIL Score is also called a credit score. This is a kind of credit history of the person taking the loan. When a farmer goes to take a loan, the bank checks his credit score. The bank sees that the applicant already has a loan. The bank also sees that if the farmer already has a loan, whether he can pay the installments on time or not. The credit score for such individuals ranges between 300 to 900. However, banks easily give loans to farmers if they have a credit score of 750 or more.

Farmers can take this type of loan
Crores of farmers in the country take agricultural loans from the government and cooperative banks for farming. Many times farmers are not able to pay the installments on time. In such a situation, the bank also declares him a defaulter. After this, all avenues of taking loans from banks are closed. Many times farmers are not able to repay the loan due to crop failure or loss in farming. In such a situation, their credit score falls below 750 and banks refuse to give them loans again. The special thing is that farmers take many types of loans for farming. This includes Kisan Credit Card, Tractor Loan, Personal Loan, and Gold Loan etc.

How to improve CIBIL score
If the bank has declared you a defaulter, then to improve your image you will have to increase your CIBIL score. For this, pay the entire installment including onion on time from the bank from which you have taken the loan. After this, your credit score will increase. At the same time, experts say that farmers should take loans according to their income. In such a situation, it is easy to repay the loan.

What checks does the bank check before giving an agricultural loan?
Before giving an agriculture loan, the bank first looks at the age of the farmer. The age of the farmer taking the loan must be at least 18 years. At the same time, the credit score of the farmer taking the loan should be 750 or more. Apart from this, the farmer should also have his land. They should also have proof of land ownership and proof of income. At the same time, the bank also looks at the income of the farmer before giving a loan. At the same time, after the completion of the verification process, the bank will decide on your loan application.

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