04 July 2011
How to Get Home Loan Approved for Farmers
Since many farmers depend upon crops and yearly turnover they will require a good financial consultant to guide them regarding matters of home loans and other investments. The eligibility criteria for farmers to get their loan approved would be similar to other borrowers of loans.
The first point to understand is which type of loan would be best. How is the income schedule, whether it is based only on turnover of crops or the farmer has additional land and assets which they can mortgage and avail a loan. Even possession of vehicles and tractors can be used as security. If the farmer has stable monthly allowance apart from the money required for monthly expenses then it becomes very simple. Nowadays many farmers are going in for co-operative schemes of investment where they can lower the risk of income depending only on crops. By opting for any saving account and schemes one can start the process of applying a home loan much sooner. This will give them financial standing and the lender will view these investments as security for approval of a home loan. Your savings account details are also important. Your land deeds and property agreements are the documents that can be used as proof of your income.
Most important is income eligibility, whether you come into this group or not will affect your chances of loan approval. If you have money saved and also remaining every month after your monthly expenses and also have some kept aside for emergencies then you will be viewed in very good terms as a borrower of any loan. The number of family members and their age group will also have a major impact on your home loan approval. Any lender will also consider the farmer’s other family members for approval of home loans. Disabled and dependent members will also be considered as liabilities for the borrower. The number of children in your family and most importantly your age group, that is a younger farmer will show more potential for repayment but may not have enough investments whereas an intelligent senior farmer may have secured investments and regular incoming every month.
Finally the farmer can search for a list of low budget homes. This can be found out from friends or relatives and also the internet. They can also search for best offers from lenders in special category. Government offers on home loans at a subsidized rate for farmers can also be searched for. Try to find out homes for sale as they will turn out to be cheaper and rural areas having low population will also have low budget homes.