Scale of Finance refers to the finance needed for raising a crop with respect to per unit cultivated area measured in hectare or acre. When it comes to different crops, the scale of Finance of garden crops is chosen each year by the district level technical committee.
It is something that is likely to be fixed by the district level technical committee according to the local cost calculated based on per unit per animal, per acre, per bird etc. When it comes to capturing fisheries, the working capital amount might incorporate the price of labouring charges, ice charges, mooring charges, fuel charges as well as landing charges. Read on to know more.
Scale of finance in agriculture
Scale of Finance refers to the cornerstone of agriculture credit. It happens to be fixed for each crop at district level. Moreover, it forms the base for finding out the suitable credit for every farmer and crop. The limit additionally is decided according to the crop grown, area cultivated and the scale of finance.
The fixation of the scale of Finance may be according to the basis of acres. It indicates a range that considers numerous aspects. This indicates cropping practices, agro-climatic zones for each essential crop sown within the district for numerous cropping seasons. They also include some crops if there is any.
When it comes to an irrigated and irrigated crops, separate scales might also remain prescribed. Among these, local and traditional farming practices also count. For animal husbandry activities, the scale of Finance might be fixed according to bird or animal basis. It is for all essential activities done within the district after paying due heed to the rearing practices and recurring expenses. They are demanded for sustaining production activities. On the other hand, when it comes to the fishery sector, the scale of Finance might be fixed according to the average unit dimension of the investment.
How much is a crop loan per acre
The importance of agricultural loans lies in the fact that a farmer can find seasonal every cultural activity or similar activities like land purchase or animal farming. It is one of those loans that helps purchasing inputs like insecticides, seeds and fertilizers. Also, engaging labour for harvesting and cultivating crops count as well. An extension to this, land purchase and buying agricultural tools is included. Transplantation, sowing, land ploughing, and weeding are also incorporated within agricultural loans.
When it comes to the price of crop loan, farmers can get agricultural loans beginning at 7% per annum and with the processing charge ranging between 0 to 4% of the entire loan amount. The crop loan happens to be offered to the farmers at a subsidised rate of 4% per annum, thereby helping them for the cropping season with low interest.
These were all you need to know about the scale of finance. Check out the above paragraph to understand it better and learn about the crop loan process as well.
