People engaged in farming and livestock production often wonder how to apply for government-backed, interest-free agricultural and livestock loans. Below you will find detailed information for those who want to apply for the 100,000 TL zero-interest agricultural and livestock loan in 2021.
How to Apply for the 100,000 TL Zero-Interest Agricultural and Livestock Loan?
Interest-free agricultural and livestock loans provide significant financial relief for farmers and livestock producers. Applications for zero-interest agricultural and livestock loans are handled through Ziraat Bank.
The application process at Ziraat Bank is as follows:
- Applications are submitted at Ziraat Bank branches.
- The applicant should go to the Agricultural Affairs (Zirai İşler) desk at the branch.
- The officer in the Agricultural Affairs unit will request the required documents from the applicant.
- All documents must be delivered complete and accurate.
- When documents are complete and the applicant meets the necessary conditions, the application process begins.
- If Ziraat Bank requests collateral, a title deed for immovable property may be required; for animals, an expert valuation may be performed.
- Once approved, the agricultural and livestock loan is finalized and disbursed.
- Approved applicants can begin using the loan within 15 days.
Where to Apply for Interest-Free Agricultural and Livestock Loans?
Another common question is where to submit the loan application. Interest-free agricultural and livestock loans are provided by Ziraat Bank. Applicants must submit their applications in person after completing the required documentation; someone else cannot apply on their behalf.
For tractor purchases, both Ziraat Bank and Halkbank offer tractor financing for those seeking agricultural loans.
What Are the Conditions for Interest-Free Agricultural and Livestock Loans?
In 2021, Ziraat Bank and Agricultural Credit Cooperatives implemented low-interest and interest-reduced loan schemes for farmers as published in the Official Gazette. These reduced-rate loan arrangements were planned to continue into 2022 as well.
Ziraat Bank and Agricultural Credit Cooperatives offer reduced-interest or interest-free loans to farmers and livestock producers depending on the loan’s purpose and the applicable conditions.
These conditions include:
- Zero-interest discounts are provided for periods determined by the Agricultural Credit Cooperatives (TKK).
- Repayment procedures and collateral requirements are set by TKK for the specified periods.
- Loans taken for agricultural purposes must be used for agricultural activities.
- Ziraat Bank sets current agricultural loan interest rates and calculates any discount based on the loan purpose and the difference between standard and subsidized rates.
- Banks other than Ziraat Bank offering loans with interest support do not automatically provide state-supported interest-free loans unless explicitly published in the Official Gazette.
- The farmer must not have benefited from the same loan program previously.
- Guarantors may be required. A guarantor with at least two sources of income is preferred, and if the guarantor is married, their spouse must consent to the guarantee.
- For livestock producers, animals must be registered with HAYBİS (animal information system).
- Applicants should have a sufficiently high credit score.
How Long Does the Application Process Take?
The duration of the application process depends on the approval timeline. Applications proceed once the applicant meets the requirements and submits all documents. After bank approval, the loan can be made available for use within 15 days.
Once approved, payments for these loans can include a two-year grace period. After the two-year grace period, repayments begin. Borrowers may choose to start repayments earlier if they wish. Repayment schedules vary by loan amount and installment plan, but it is expected that payments will be completed within five years in many cases.
What Documents Are Required for Interest-Free Agricultural and Livestock Loans?
According to the Official Gazette, agricultural and livestock loans in 2021 were provided by Ziraat Bank, which also accepts applications.
Documents required when applying to Ziraat Bank for an interest-free agricultural and livestock loan include:
- Copy of national identity card.
- Proof of collateral. Title deeds for fields or other immovable property may be requested as mortgage collateral.
- Certificate of registration in the Farmer Registration System (Çiftçi Kayıt Sistemi).
- If the loan is for a business, the business’s balance sheets for the last three years may be requested. This is not required for individual farmers.
To obtain the registration needed for the interest-free loan, review information on how to register in the Farmer Registration System.
Who Is Eligible for the 100,000 TL Zero-Interest Agricultural and Livestock Loan?
Ziraat Bank offers state-supported loans for farming and livestock activities. These supports aim to encourage land cultivation, animal production, and increase employment. Through these programs, loans with interest reductions or zero-interest options are provided.
Many applicants wonder whether they qualify. Eligibility and the fields supported vary by program. Examples of eligible activities and related details include:
Dairy and Combined Cattle Farming:
- Investment in priority regions,
- Acquisition of idle enterprises,
- Purchase and use of domestically born animals,
- On-site feed production and pasture use,
- Use of geothermal, renewable, or waste energy,
- Organic farming and good agricultural practices,
- Young farmer entrepreneurship,
- Women farmer entrepreneurship. These are among the qualifications for dairy and combined cattle farming.
- You can access loans up to 25 million TL under certain conditions.
- If you own an enterprise, you may receive a 50% state interest support.
- To receive zero-interest loans, applicants must meet at least five of the listed criteria, such as using domestic animals or producing their own feed.
Breeding Heifer Production:
- Investment in priority regions,
- Acquisition of idle enterprises,
- Purchase and use of domestically born animals,
- On-site feed production and pasture use,
- Young farmer entrepreneurship,
- Women farmer entrepreneurship. These are the qualifying criteria.
- Loans up to 10 million TL are available.
- If you own an enterprise, you may receive a 75% state interest support.
- To receive zero-interest loans, applicants must meet at least three of the listed criteria.
Beef Cattle Fattening:
- Investment in priority regions,
- Acquisition of idle enterprises,
- Purchase and use of domestically born animals,
- On-site feed production and pasture use,
- Young farmer entrepreneurship,
- Women farmer entrepreneurship. These are the qualifying criteria.
- Loans are available up to a limit of 10 million TL or more depending on the program.
- If you own an enterprise, farmers can receive interest-free support; the state may provide up to 90% interest support in some cases. Applicants must meet at least five of the specified criteria.
Small Ruminant Livestock:
- Investment in priority regions,
- Acquisition of idle enterprises,
- Purchase and use of domestically born animals,
- On-site feed production and pasture use,
- Young farmer entrepreneurship,
- Women farmer entrepreneurship. These are the qualifying criteria.
- Loans are available up to a limit of 15 million TL in some cases.
- If you own an enterprise, the state may provide 75% interest support for small ruminant producers.
- To receive zero-interest loans, applicants must meet at least three of the specified criteria.
Traditional and Widespread Animal Production:
- Investment in priority regions,
- Acquisition of idle enterprises,
- Purchase and use of domestically born animals,
- On-site feed production and pasture use,
- Use of geothermal, renewable, or waste energy,
- Organic farming and good agricultural practices,
- Young farmer entrepreneurship,
- Women farmer entrepreneurship. These are the qualifying criteria.
- You can receive the minimum interest-free loan starting from 100,000 TL.
- If you own an enterprise and meet at least five specified qualifications, you may be eligible for interest-free loans up to 1,500,000 TL.
Which Bank Provides the 100,000 TL Zero-Interest Agricultural and Livestock Loan?
In 2021, interest-reduced and interest-free agricultural and livestock loans were provided through Ziraat Bank in coordination with Agricultural Credit Cooperatives. For 2021, Ziraat Bank’s agricultural loan annual rate was set at around 9% for standard loans, with reductions or exemptions applied per program rules.
Applicants who meet the stated conditions and submit required documents will receive an appropriate repayment plan reflecting interest reductions. Borrowers will then repay their agricultural and livestock loans to Ziraat Bank according to that plan.
How Can I Obtain a Zero-Interest Livestock Loan?
There are specific requirements for applicants seeking interest-free livestock loans. Conditions include the number, age and breed of animals to be purchased, as well as registration and insurance requirements.
General conditions for livestock loan applicants include:
- Ziraat Bank evaluates the applicant’s credit score; applicants must have a sufficiently high credit rating. Low scores may result in rejection.
- Ziraat Bank may require a guarantor who owns immovable property. If the guarantor is married, their spouse must approve the guarantee.
- First-time animal purchasers may be asked to provide immovable title deeds or mortgages.
- For enterprise loans, ear tag numbers of animals on the holding must be provided.
- Animals must be registered in HAYBİS. Applications are canceled if animals are not registered.
- TARSİM insurance must be arranged for animals to be purchased.
Specific conditions by animal type include:
For breeding heifers:
- At least 5 heifers must be purchased.
- Each heifer should be at least 36 months old.
- The heifer should have given birth at least once or be pregnant.
For beef cattle:
- At least 10 head must be purchased.
- Each animal should be at least 48 weeks old.
- Animals may have given birth at most once.
For small ruminants:
- If sheep are purchased, at least 50 head are required.
- If goats are purchased, at least 25 head are required.
- Animals should be aged between 6 and 24 months.
- Animals must be purchased domestically.
This article outlines the procedures and requirements for applying for the 2021 100,000 TL zero-interest agricultural and livestock loan.