Wednesday 12 December 2012

What Is Meant By Commercial Loans For Agriculture?

The agricultural commercial mortgages and what is known as revolving lines of credit are some of the commercial loans for agriculture that need to be collateralized by agricultural real estate. Investor, corporation or an individual farmer looking for capital for the purpose of acquisition, expansion or providing for operating costs or for improving the current loan type for reducing interest expense need to fulfill the conditions essential for the sanctioning of these loans. It is an imperative that they take the help of a commercial loans financial institution for the agricultural sector.


Commercial loans for the agriculture sector

If you are in need of commercial loans for the agriculture sector as mentioned above, you need to learn about the start of the loan amount and the maximum limit of the same. These loans typically last for a period of 15 to 30 years and can be amortized within a period of 30 years. The great feature of no prepayment penalty is available with this type of loan as well. You can take your pick between the semi-annual and the annual loan for the farmer, corporate or investor. Some of the operations which qualify for these loans include farms, ranches, dairies, vineyards, and agricultural productions.

Part time agriculture loans

Other than commercial loans, the option of part time agriculture loans is also available from the banks and financial institutions. Even these loans carry the advantage of no prepayment penalty. The part time agriculture loans require the owner to have a house on the property or have an additional source of income as a surety for loan interest payment. 


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