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Scope of Agricultural Finance  Form

Scope of Agricultural Finance Form

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lending whether to a farmer or torn agribusiness shares many similarities with lending to other sectors but due to the nature of Agriculture also has some significant differences banks and lenders need to be able to understand these differences so that they can design their products monitoring credit risk assessment and repayment processes to account for them as with lending to all clients irrespective of which sector they operate in a bank needs to consider the five C's when lending for agriculture clients character capacity capital collateral conditions however there are also other essential factors to consider as agriculture deals with nature and this may affect a client's ability to repay the loan these agriculturally specific factors need to be taken into account when assessing a client's ability to repay when structuring alone and when monitoring the loan throughout the season special attention should be paid to price times production equals revenue it is critical that bankers wh

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