• Profile of the customer is checked. He should be a resident of India. He should be in the business of agriculture from past 2 years.

• Age of the individual applying for the loan should be at least 21 years. Maximum age at the time of loan maturity should be 75 years.

• Banks checks the ownership of the land before deciding the eligibility of the loan. Minimum 2 acres of land should be in the name of borrower. Most banks ask for 3 acres or more ownership of land. This factor depends on the norms of various banks and NBFCs.

• Applicant should be in agricultural business for at least 3 years. If he belongs to family who is in farming business past decades then it adds to the eligibility of the applicant.

• Guarantor is always clubbed while sanctioning a farm equipment loan. Guarantor’s repayment capacity is thoroughly checked. He can be a salaried or a self employed individual. In case applicant is not able to repay his loan, then it is seen that guarantor does the same on behalf of the applicant. Thus its one of the most important factor while deciding the eligibility for the loan.