Rural credit is an important opportunity for farmers seeking to expand their production, purchase goods and machinery. To find out how these loans work and what are the possibilities for you to get this money, we separate some important information here. Currently, banks, finance and cooperatives meet short-term and long-term credit needs in rural and semi-urban areas.
For what types of purchases can I use rural credit?
In this article, we explore the role of rural credit in promoting agricultural sustainability in Brazil on trends in different categories of credit for farmers and ranchers. It is worth mentioning that the creation of lines of credit for the rural sector are more related to sustainability, so interest rates and sources of resources are more accessible.
In order to obtain rural credit in banking and financial institutions in Brazil, it is necessary to consider its objective and the conditions of the borrower, in addition to the amount requested. After all, what do you want to do with the funding? Think and respond. Let’s see below on what kind of ruralista credit will you fit.
Rural credit of cost
According to the Ministry of Agriculture, the rural credit is a kind of cover for expenses that are directly involved in the farmers’ cycles. The goal, of course, is to fund some action in rural production. In practice, the agriculture that obtains this type of financing can acquire in the part of harvest, extraction and even industrialization of the products, including until the acquisition of animals.
Rural investment credit
This type of credit aims to boost the agricultural economy. Typically, these are more targeted financings for renovations, constructions, machinery and other equipment that last for at least 5 years. If you want to acquire a tractor, for example, here is a credit option.
The resources and conditions necessary for the commercialization of agricultural products are included in the rural marketing credit. This type of investment is directed to processes of storage, storage, among others.
Credit to buy property in the countryside
Another option for you that is seeking rural credit is to buy a property, site or farm. If you plan to buy a property, then analyze different aspects well before closing a deal. The financing of real estate is much more extensive than any other and to enter into this form of purchase requires programming, organization and even money to give input. So keep in mind the following points of funding:
- Type of credit contracting
- Interest Rates
- Amounts of the benefit
- Financing time
These 4 points are important and you should analyze the different financial ones to see which one will really fit into your budget and which of course have the most affordable rates on the market.
Where and how to get rural credit?
Some banks are opening up more space for rural credit, as is the case with Banco do Brasil. The state-owned company seeks to promote the country’s development through farmer financing programs.
According to the bank itself, farmers can enjoy better rates, limits, advantages and more flexible deadlines. If you want to know more, you can consult the credit simulator and check the financing modalities of the bank.
Credit for those who already have rural property
If you already own a property, for example, you may have another facility when it comes to hiring credit. There are financiers who carry out loans with assets as collateral. That is, you have a property valued at R $ 200 thousand. It is possible to take a smaller loan and place as part of payment, prior to discharge, your home. The same thing happens if you have a car. Check out this type of loan, since interest is usually much more in mind!
Remember that to get this kind of credit you need to have all the documentation of the property in good standing, including your name in the owner’s field. On average, depending on the bank, analysis is done in approximately 30 days.
BNDES had rural finance
One of the most traditional government programs was Finame Agrícola, financed by the BNDES (National Development Bank). This type of loan was not made since January 2017, but in operation, it was more focused on the acquisition of national machines, equipment, computer goods and even automation.
If you can not get rural credit, you can opt for other forms of financing. The important thing is to have a plan of action and make your rural business grow, expand and have good results.
The benefits of rural finance
The Brazilian agricultural market is strong and well known all over the world. When there is government subsidy and bank financing in specific programs for farmers, there is a warming in the sector.
This more intense movement occurs because farmers, when well equipped and up-to-date, are able to produce more, deliver products in better conditions and make the national economy spin. So if you are a farmer, be sure to look into the possibility of financing, look for your reliable bank and check the conditions.