Mercantile Bank Agriculture Loan

Mercantile Bank Limited recognizes the pivotal role of agriculture in Bangladesh’s economy. To bolster food security and foster rural development, the bank offers a range of entrepreneurial loan products. These initiatives aim to empower small and marginal farmers, as well as barga farmers at the village level, by facilitating access to credit. By increasing financial support to key sectors and promoting food production and employment activities, Mercantile Bank strives to catalyze significant transformations in agriculture and the rural economy.

Purpose of the Mercantile Bank Agriculture Loan

  • To achieve food self-sufficiency from the marginal stage and help in poverty alleviation
  • Self-employment generation and empowerment of entrepreneurs in rural areas
  • Loans aimed at the development of agriculture and farmers by expanding agro-based industries.

Lending Sectors

Mercantile Bank extends its lending services to various sectors to support agricultural development and rural livelihoods. Our lending sectors include:

  • Crop production and marketing
  • Purchase of tractors
  • Purchase of agricultural and irrigation machinery
  • Production of nursery and horticultural crops
  • Rural transport sector (Boats, Rickshaws, Vans, etc.)
  • Initiatives based on agriculture
  • Fisheries, poultry, and dairy sectors for farm-based agriculture

Mercantile Bank Agriculture Loan Amount

  • The loan capital ratio is set at 70:30 for the purchase of agricultural machinery and term loans.
  • Loan limits are determined for crop loans based on the cost of production and land area.
  • Credit limits in the fisheries and poultry sector are determined based on pond size and farm size.

Interest Rate

The interest rate is determined in accordance with the policies of Mercantile Bank and Bangladesh Bank.

Loan Eligibility

To be eligible for Mercantile Bank Agriculture Loans, applicants must meet the following criteria:

  • Actual farmers or individuals directly involved in agricultural work.
  • Must be permanent residents within the bank branch area.
  • Age of the borrower must fall within the range of 18 to 60 years.
  • Must demonstrate diligence, hard work, sincerity, and dedication in farming practices.

Essential Loan Documents Needed for Loan Approval

  • National Identity Card (of the customer and his wife/husband/family member).
  • Income and Expenditure Statement of Personal Assets.
  • Guarantor’s own national identity card.
  • Farmer Identity Card issued by Directorate of Agricultural Extension (where applicable).
  • Attestation letter issued by two eminent persons of the banking area acceptable to the bank.
  • Undertaking that there are no defaulted loans in any institution.
  • Valid documents in support of agricultural land (deed in case of owner, lease documents in case of a lease, square contract with the signature of a dignitary of the area for square cultivator).

Loan Repayment Tenor

  • Maximum 3 years
  • Maximum 90 days of a loan in case of crop stock
  • Term and current loan facilities for farm-based loans
  • Conducting proper loan disbursement, monitoring, and recovery activities by the bank branch on time
  • Loan disbursement and repayment schedule will be determined through the crop production schedule.

For farm-based loans

  • Income-expenditure statement of the farm must be seen
  • Trade license
  • TIN (if applicable).
  • Copy of the registration of the concerned department of the government.
  • Project cost as verified by the concerned department of Govt.

Loan collateral

  • In case of crop loan, the guarantee of husband/wife should be given by two other persons acceptable to the bank, but the guarantee of the landowner is mandatory in the field of Barga farmers. Subsidiary collateral may be required depending on the size of the crop loan and prevailing bank policies.
  • Subsidiary collateral will be required for every farm-based loan.

Loan application procedures

  • A specific application form of the bank should be duly filled out and signed and the required documents should be submitted to the nearest branch.

FAQs: Agriculture Loan from Mercantile Bank

Q: What is an agriculture loan?
A: An agriculture loan is a loan specifically designed to cover the buying or production costs associated with agricultural activities.

Q: What is the loan tenure of this Agriculture Loan?
A: The maximum loan tenure is 90 days for crop stock loans.

Q: What is the interest rate for an Agriculture Loan?
A: The interest rate for an Agriculture Loan typically ranges from 7.00% to 9.00%.

Q: What is the age limit for the Mercantile Bank agriculture loan?
A: The age limit for applicants ranges from 18 years to 60 years.

Q: Who can apply for an agriculture loan from Mercantile Bank?
A: You can apply for an agriculture loan from Mercantile Bank by visiting the nearest branch or contacting us via mobile phone or TnT at 16225.

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