How do I get an agricultural loan?
Farmers have three sources: subsidised loans from the Agrarian Credit and Development Agency (through authorised banks and non-bank lenders, with the rate reduced significantly by subsidy), Entrepreneurship Development Fund loans for agricultural projects (~5%) and commercial banks' agro products (12–20%). Requirements: registration in EKTIS (the Electronic Agricultural Information System), a land title or lease, and a business calculation matching the crop or livestock type.
Agricultural lending is seasonal: 6–9 months pass between sowing, irrigation, harvest and sale, so the repayment schedule is aligned with the sales cycle. State support is strongest in this sector, with subsidies, reduced rates and insurance support, but all of it is tied to EKTIS registration. Below we explain the sources, documents and how the seasonal schedule works.
What you need
- 1 Farmer registration in EKTIS and registration of the land plot or livestock holding
- 2 Land title or a long-term lease agreement
- 3 A cost-revenue calculation for the crop or livestock type and a sales channel (contract, market)
- 4 Collateral (land, machinery) or a guarantor; for small amounts EKTIS data may suffice
Bank offers that fit this case
| Bank | Loan | Rate | Term | |
|---|---|---|---|---|
Yelo Bank
|
Yelo Bank Biznes Kredit | 8.9% | 59 mo. | Details |
Unibank
|
UniBank Biznes Kredit | 9% | 60 mo. | Details |
Rabitəbank
|
Rabitəbank Biznes Kredit | 10.5% | 48 mo. | Details |
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Kapital Bank
|
Kapital Bank Biznes Kredit | 12% | 60 mo. | Details |
ABB Bank
|
ABB Biznes Kredit | 15% | 48 mo. | Details |
Access bank
|
AccessBank Biznes Kredit | 18% | 48 mo. | Details |
Expressbank
|
Expressbank Biznes Kredit | 15% | 48 mo. | Details |
Sample calculation
Estimated figures for 20 000 AZN over 36 months at ~8.9% effective rate. The exact number depends on the bank.
How to apply?
What to watch for?
- ✓ Declare your sown area and crop in EKTIS on time; it is the primary source for subsidies and loans.
- ✓ Ask for a repayment schedule aligned with the harvest sale (for example one payment in autumn); a monthly schedule does not suit farmers.
- ✓ Agricultural insurance is state-supported and a condition for some loans; add its cost to the rate.
- ✓ For machinery, Agroleasing and state-supported leasing may be cheaper than a loan.
Frequently asked questions
What is the rate on an agricultural loan?
On the agency's subsidised loans the farmer's rate usually comes down to about 7% a year or lower; commercial banks' agro loans are 12–20%. Check exact terms on the agency's website.
My land is leased; can I get a loan?
Yes, a registered long-term lease (usually 5+ years) is accepted. With a short-term or verbal lease only a small guaranteed loan is possible.
Are loans available for livestock?
Yes, purchase of cattle, feed and barn construction are financed. The animals must be registered in EKTIS and in some cases insured.
Related questions
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