Farmers may find it easy to avail of agriculture loans now as a group, set up by the Reserve Bank of India [Get Quote], has recommended changes in the loan procedures.

Following this, small and marginal farmers availing of agriculture loans up to Rs 50,000 need not pay any service charge and need not deposit land documents at bank branches.

The RBI's panel was set up to examine the procedures and processes of agriculture loans.

For loans exceeding Rs 50,000, the service charge should not exceed 0.25 per cent of the loan limit per annum, said the group's report.

As there is no uniformity in the loan application forms prescribed by various banks, the group has suggested that the Nabard should issue and circulate the mandatory application forms among banks.

The form should be simple, user-friendly and should use the local language. It should consist just of two parts - basic application form and the relevant annexure depending on the activity.

Farmers require timely and adequate credit. Therefore, bankers should have the freedom to decide the loan amount, said the report.

The norms of the district-level technical committee with regard to the amount of the loan should only be used a broad indicator. The report also suggest that all loans having credit limit of up to Rs 50,000, should be disposed of within a fortnight and those with credit limits up to Rs 300,000, within four weeks.