How to Apply for Agriculture Loan

Here is the standard process of applying for an agriculture loan if you’re planning to use real estate property like a piece of land as collateral.

Figure Out What You Need: Magkano ang kailangan mo and what do you plan to use the money for? Lenders will want to see how the loan will help your farming or agricultural business.

Get Your Documents Ready. You’ll need to gather some documents, such as:

Proof that you own the property. Mas maganda kung nakapangalan sa’yo ang property. Pwede din gawing co-maker kung kanino nakapangalan ang lupa.
A recent appraisal or valuation of the land. In many cases, the lender will assign an officer to check your property’s value. Dito malalaman kung ilang porsyento ng desired loan amount ang mabibigay.
Information about your agricultural business, like a business plan, financial statements, and income projections.
Personal identification and financial details, including your credit history, income statements, and tax returns.

Related: Tips for Faster Loan Approval

Fill Out the Application: Complete the loan application form from the lender. You’ll need to provide information about yourself, your business, and the property you’re using as collateral. Here’s our application form that you download and print. Pwede ka din makakuha ng form mismo sa pinakamalapit na branch.

Undergo a Credit Check: The lender will check your credit history and financial stability to make sure you can repay the loan. Standard ito sa mga bangko at financing companies sa Pilipinas, especially if you’re applying for a higher loan amount. This can take between 1 to 2 weeks, depending on how quick you can provide the required financial documents.

Review and Sign the Loan Terms: If your application is approved, the lender will give you the loan terms, including interest rates, repayment schedule, and any fees. Make sure to review everything carefully before signing.

Close the Loan: Once you agree to the terms, you’ll go through the closing process. This usually involves signing the final paperwork, which might include a mortgage or deed of trust if the property is used as collateral.

Receive the Funds: After closing, the lender will provide the loan funds as agreed. For First Standard, you get the approved loan amount the next day after approval!

Manage the Loan: Stick to the repayment schedule and keep in touch with your lender. If any issues come up, it’s best to address them as soon as possible.

Different lenders might have their own specific requirements or procedures, so it’s a good idea to check with them directly to make sure you meet all their criteria.