How To Apply For A Farmer's Credit Card

A farmer's credit card is a type of credit card specifically designed for people in the agriculture industry. These cards provide benefits tailored to farmers' needs, such as rewards on purchases like equipment, fuel, and supplies.

If you are a farmer looking for a credit card to help finance your operations, here is a guide on how to apply for a farmer's credit card.

Checking Your Eligibility

Before applying for a farmer's credit card, the first step is to make sure you are eligible. Most farmer's credit cards require that you have a farm business registered and operating. Some issuers may require a certain amount of annual farm revenue, such as ₹5 lakh or more. They also typically require good personal credit, with minimum scores between 620 to 700.

You'll need to provide documents that validate your farm business during the application process. This usually includes filing as a business with the IT Department, holding a farm operation business licence, and having a TAN number. Gathering these documents ready will help your application go smoothly.

Comparing Farmer's Credit Cards

Once you have confirmed your eligibility, the next step is researching your options. There are several credit card companies that offer farmer's credit cards, such as SBI and HDFC Bank. Compare what each card offers in terms of:

Rewards - Look for cards that provide bonus rewards on agriculture-related purchases. This usually includes 2x or more points on expenses like equipment, livestock, fuel, utilities, veterinary services, and more.
APR and fees - Pay attention to interest rates and annual fees. Look for competitive rates and ₹0 annual fees if possible.
Benefits - Perks like 0% financing on large purchases, discounts on supplies, complimentary insurance, and more may be offered.
Provider acceptance - Ensure the card is accepted at merchants you frequently use for farm supplies and equipment.

Once you compare, you can narrow down the top 2-3 farmer's credit cards that best match your profile and needs.

Submitting Your Application

When you have selected the farmer's credit card you want to apply for, it's time to complete the application. Here are some tips for smoothly applying for a farmer's credit card:

Apply online - Most issuers allow you to apply online which is faster and more convenient. Have your documents scanned and ready to upload.
Provide your farm details - You'll need to provide information like your farm operation's legal name, address, TAN number, ownership structure, annual revenue, years in business, and license numbers.
Enter your personal details - Provide info like your name, date of birth, PAN number, personal address, income, and contact details.
Review credit impacts - Your application may involve a hard credit check which can temporarily impact your score. Be prepared for this.
Read terms thoroughly - Don't gloss over terms and conditions. Understand APRs, fees, limits, and other policies before accepting an approval.

Submitting an accurate, detailed application helps improve your chances of approval for the farmer's credit card you want. Contact the issuer if you have any questions during the application process.

Providing Documentation

During the application process, you may be asked to provide documentation to verify your farm business operations. This may include:

Farm operation tax returns and financial statements.
Business permit, license, or registration certificates.
Certified business valuation documents.
Articles of incorporation, organization, or partnership.
TAN number confirmation.
Business bank account statements.
Farm operation business plan.

Have these documents ready to submit if requested by the credit card issuer. Promptly providing full documentation can help expedite your application's review and approval decision.

Getting Approved And Receiving Your Card

The approval process for farmer's credit cards usually takes between 1-2 weeks. You will be notified if you are approved and at what limit amount. Be sure to read the issuer's terms for accepting the card. Also confirm the benefits, limits, APRs, and fees before activation.

Once approved, you will receive your physical credit card by mail. You may also be provided online access to manage your account. Activate your card and read all policies thoroughly before making any purchases. Contact the issuer immediately if you notice any inaccurate information on your account.

With your new farmer's credit card approved and in hand, you can start utilising the benefits and rewards on your eligible farm expenses. Be sure to make payments on time and use the credit responsibly. Enjoy the perks and convenience of having a tailored credit card for your farm operation needs.

What Are Benefits You Get If You Apply For A Farmer’s Credit Card?

Special rewards and cashback on agriculture purchases - Most farmer's cards offer bonus reward points or higher cashback on expenses like equipment, livestock, seeds, utilities, fuel, etc. This can add up to significant savings. You can also directly avail of schemes like Meri fasal mera byora with the help of this credit card.
Low interest financing - Some providers offer 0% interest financing for 6-12 months on large agriculture purchases over Rs 1 lakh. This allows you to spread out payments interest-free.
Discounted insurance - Many farmer's cards come with complimentary crop insurance, equipment insurance, or life insurance policies as part of the benefits. This provides financial protection.
Supplier discounts - You may get access to special discounted pricing on select brands or suppliers of farm machinery, supplies, etc. Exclusive deals are negotiated for cardholders.
Flexible payment options - Farmer's cards tend to offer flexible payment options like interest-only payments during planting season or skip-pay options during harvest season.
Higher credit limits - Issuers provide higher credit limits compared to regular cards based on your farm revenue and assets. This provides ample purchasing power.
Business accounting features - Farmer's cards have spending reports, accounting integration, and other features to help track farm expenses and simplify taxes.
Dedicated customer service - Issuers have dedicated farmer support teams to help address your inquiries and provide tailored assistance.

Overall, a farmer's credit card can provide specialized benefits and perks to help reduce costs, maximize rewards, and manage finances for your agribusiness.

What Credit Score Is Required For A Farmer's Credit Card?

Most farmer's credit cards require a minimum credit score between 620 to 700. Some may approve those with scores in the high 500s with limits under ₹50,000. The better your credit score, the higher limit you can qualify for.

How Old Does My Farm Need To Be To Qualify?

Most issuers require your farm business to be at least 1-5 years old to apply. Some may accept newer farms with sufficient revenue and assets. Established farms over 5+ years old typically have the best approval odds. If you don’t meet the specific criteria, then you can use third party apps to get upto 5000 loan urgent. However, we only suggest you to try this method if you only need funds on emergency basis.

What Documents Do I Need To Apply A Farmer's Credit Card?

Be prepared to provide tax returns, business licences, TAN confirmation, bank statements, and other documents that validate your farm operations during the application. These verify you meet the issuer's eligibility requirements.

Can I manage my farmer's credit card account online?

Yes, most farmer's credit card issuers provide online account access to view statements, make payments, update information, manage settings, redeem rewards, and more. This provides convenient 24/7 account control.

How do I qualify for the best rates and rewards?

Excellent personal credit (720+ scores) and ample farm business revenue (₹10 lakh per year) qualify you for the top rates and highest rewards earnings. Maintaining strong credit and usage can help improve your rewards earnings over time.