In this paper we will discuss the property loans provided by the government in the rural areas. This program is an integral part of the rural development program. Mainly, the poor farmers are benefited by this property loan. Rural land loans are given to the family size ranchers and farmers who are not in a position to take credit from the banks or the Farm Credit System institutions.
The farmers may take the loan to purchase equipment, land, feed, livestock, supplies and seed or construct their own buildings. This is an important step by the government for rural development. However, the main aim of that is almost same in all the countries across the globe, of introducing the rural property loan program to the rural people, mainly the farmers.
Rural property loans make the way for the retiring and retired farmers to transfer their land properties to the next generation ranchers and farmers. In the United States, the agricultural department, named as the United States Department of Agriculture (USDA), looks after the rural land and property loan programs.
Rural property loans are given only to the family size farmers.
This loan may also be taken for family subsistence, development of the water supply system and refinancing the debts, although under some certain conditions.
The interest rates are fixed.
After closing the term, no cash reserves are needed.
This facility is limited to the rural areas only.
Last Updated on : 30th July 2013