Loan disaster – terms and interestOn September 30, 2019 by Ana Gagne
In previous articles, we explained to each other what are the different types of loans. Today we will deal with the disaster loan solution. In what situations can a disaster loan help farmers? When can I apply for a preferential disaster loan? Let’s shed some more light on this issue!
Disaster loan terms
Let’s start with the basics: what are disaster loans? The definition is relatively simple, a disaster loan is a loan intended for borrowers who, unfortunately, have suffered specific losses due to the appearance of a natural disaster or due to destructive weather that persists over a longer period of time. What does this mean in practice? You can apply for disaster credit, for example, if your crops have suffered from flooding or drought. Unfortunately, despite the technological advancement of modern civilization, the weather can still be a rampant element.
Who are disaster loans targeted for? Of course, if you want to apply for a disaster loan, you must meet certain conditions. What’s more, it is worth remembering that the disaster loan is granted by specific banks that have an agreement with the Agency for Restructuring and Modernization of Agriculture. There are two types of disaster loans: a revolving disaster loan and an investment disaster loan.
Disaster interest rate
What is the interest rate on the disaster loan? What is worth knowing about this topic? A disaster loan is a preferential loan. What does this mean in practice? In the case of a disaster loan, a certain proportion of interest is regulated by the Agency for Restructuring and Modernization of Agriculture. This is a characteristic feature of disaster loans, which can be of great importance for borrowers.
Disaster credit limits
Do disaster loans limit any limits? Yes! In the case of disaster loans, specific limits apply regarding subsidies for the Agency for Restructuring and Modernization of Agriculture to the interest rate on those loans. It is worth keeping this in mind, especially if we plan to apply for this type of preferential loan.
TO CONCLUDE: A disaster loan is a so-called preferential loan. In the case of these loans, there is an ARiMR surcharge, i.e. the Agency for Restructuring and Modernization of Agriculture, for their interest.
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