What are the application requirements for an agricultural loan?

Agricultural loans, also called agricultural lending, refer to loans provided by financial institutions to enterprises and individuals engaged in agricultural production to meet the needs of agricultural production. In modern agriculture, with the development of the integration of agriculture and industry, many countries also classify loans provided for the supply of production materials before agricultural production and for the processing and marketing of agricultural products after production as agricultural loans, and some also classify loans provided by banks to rural credit cooperative organizations as agricultural loans.

Applicants for agricultural loans

1. State-owned agricultural enterprises: including state-owned farms of agriculture, forestry, animal husbandry and fishery under the reclamation, agriculture, forestry, animal husbandry, aquatic products, water conservancy, overseas Chinese, reform-through-labor, agricultural machinery, meteorological, General Logistics Department of the People's Liberation Army, National Defense Science and Technology Commission and other systems, as well as state-owned enterprises such as state-run agricultural industry, commerce, materials supply and marketing, service industries, transportation, construction, mining, and agricultural machinery repair and manufacturing, and various agricultural enterprise groups, leasing enterprises, joint-stock enterprises, Chinese-foreign joint ventures, and wholly people-owned institutions operated as enterprises.

2. Agricultural production collective economic organizations: including collective economic organizations in rural areas engaged in agriculture, forestry, animal husbandry, sideline production and fishery, and those serving agriculture before, during and after production.

3. Rural production cooperative economic organizations: including economic consortiums of various forms and various scales.

4. Farming households: including agricultural contracted households, self-operated households, and rural residents and rural credit cooperatives engaged in agriculture, forestry, animal husbandry, sideline production, fishery and industrial and commercial operations.

Application requirements for agricultural loans

1. The borrowing unit shall be an economic entity with legal person status. Individual borrowers shall have proof documents of lawful identity.

2. The production and operation projects engaged in by the borrowing unit must comply with national laws, policies and agricultural regional planning. Conditions such as materials, energy and transportation must be in place, and there must be a corresponding level of management. The products must meet social needs, the predicted economic benefits must be good, and the loan principal and interest must be repayable on schedule.

3. The borrowing unit shall be an economic organization that operates independently, assumes sole responsibility for its own profits and losses, and keeps independent accounts, with a sound financial accounting system, reasonable income distribution methods, and the ability to independently bear external creditor-debtor relationships.

4. Borrowing units and individuals shall have their own funds meeting the prescribed proportion, and large loans shall also have guarantees from a corresponding economic entity, or sufficient property as collateral to repay the loan.

5. The borrowing unit shall open an account with the Agricultural Bank and credit cooperatives, abide by its credit standing, accept the supervision and inspection of the bank and credit cooperatives, and submit to the bank and credit cooperatives the relevant financial accounting statements and other economic materials on production and operation activities as required.

Application procedures for agricultural loans

1. Acceptance of the loan application: the borrower shall submit a written loan application to the account-opening bank at its location in accordance with the requirements of the loan regulations, together with relevant materials. If there is a guarantor, the relevant materials of the guarantor shall be included.

2. Loan review: after the account-opening bank accepts the loan application, it shall conduct a comprehensive feasibility review of the loan, including filling in the items listed in the basic information register of the borrowing household, or the basic information register of individual loans and the financial statistical analysis table of the borrowing household.

3. Loan approval: for loan applications that meet the loan conditions after review and evaluation, a loan decision shall be made in accordance with the provisions on loan approval authority, and loan approval procedures shall be handled.

4. Signing of the loan contract: for loans approved after review, both borrowing parties shall sign a written loan contract in accordance with the Regulations on Loan Contracts and relevant provisions.

5. Loan disbursement: according to the loan contract signed by both borrowing parties and the reasonable funding needs of production, operation and construction, the lending procedures shall be handled.

6. Establishment of a loan register: a loan register shall be established according to the application.

7. Establishment of loan files: files shall be set up separately for each borrower, and the files shall record the borrower's basic information, production and operation conditions, loan disbursement, credit sanctions, loan inspections and economic activity analysis.

8. Loan supervision and inspection: after the loan is issued, supervision and inspection shall be carried out on the borrower's implementation of loan policies and the loan contract, and violations of policies and breach of contract shall be corrected and handled promptly.

9. Recovery of loans on schedule: loans shall be recovered according to the loan term agreed upon by both borrowing parties. Before the loan matures, the borrower shall be notified in writing to prepare funds for repaying the loan principal and interest. If the borrower cannot repay on schedule for justified reasons, it may apply before maturity for an extension of repayment, and after review and approval by the bank, the loan shall be recovered according to the agreed term.

10. Handling of loans occupied under abnormal circumstances: monitoring and assessment shall be carried out, and corresponding effective measures shall be taken to handle them according to different circumstances.