4/16/2012 5:55:59 AM
Posted By: sashoo Membership Level: Silver Total Points: 382
AGRICULTURAL FINANCE CORPORATION (AFC).The AFC was established in 1963 under the agricultural credit act. It grants medium and long-term development loans to large-scale farmers as well as small-scale farmers for purchase and development of land. Loans are available under the following specialized schemes:• Seasonal cooperative loans.• Land development loans.• Farm improvement loans including water supply, pasture development, livestock purchase, development of tea, coffee and sugar.• Land purchase loans.• Rehabilitation loans.The loans provided must be for specific projects, which must be technically and economically viable. They must be well managed and have reasonable insurance coverage to ensure that the loans will be repaid.The loans may be short-term (2 years and below), medium-term (between 2 – 5 years) and long-term (5 –15years). Some of these loans are not paid in cash , but AFC credit is extended to suppliers and is paid in proportion to the identified expense. Loans may be granted to individuals, cooperatives and companies engaged in agricultural loans. Repayment period varies with the type of loan taken.
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