Do you know how street financing works? What are the main advantages, main interest rates, benefits, and who is entitled to apply for this type of credit? We have gathered a series of information that may solve your doubts in this regard.
For those who still don't know about this line of financing, follow this special article to understand what its main characteristics are, who can really do it, what are the criteria for approval and much more.
Rural credit is financing intended for rural producers whose activities involve the production and/or sale of products in the agricultural sector.
To make it easier for you, we will talk about rural credit from a perspective by Banco do Brasil, as we understand that it is one of the most practical ways to obtain this rural credit.
Banco do Brasil provides lines of credit suited to the needs of rural producers who wish to invest in their agribusiness and increase their agricultural production.
See below everything you need to know about rural finance.
How does Rural Financing work?
As well as other financing (car, motorcycle, real estate, loan) street financing also has its particularities, and works according to the Bank's rules in force.
Through BB, it works with the Pronaf, Pronamp, Funcafé, FCO programs and other options that Banco do Brasil offers, the rural producer manages to finance production expenses, invest in improvements, tractors, machines and agricultural implements, in addition to selling his production.
Therefore, rural credit solutions contribute to increasing productivity, improving cash flow and reducing costs.
Rural Costing Credit Banco do Brasil
We know that life in the field has extensive activities that need to be the priority of the farmer, however, as we know, there are external concerns, mainly financial, that interfere with the time that the rural producer dedicates to his crop.
And of course, it was with this in mind that Banco do Brasil decided to present solutions for producers who need financial resources, whether to facilitate operations in rural activities or to cover emergency expenses. Costing credit lines finance production cycle expenses in any period of activity.
Therefore, you can apply for credit directly in the Application.
Rural Investment Credit
On the official website of Banco do Brasil, you will be able to find out about the different lines of rural credit for investment by BB that allow the acquisition of essential goods for the production and modernization of Brazilian agriculture, such as machines, tractors, irrigation and storage.
But you can also acquire BB rural credit lines through the BB Investimento Agro Digital app. Only BB is Agro Digital!
Agricultural Marketing
We also know that for the commercialization of the production, count on lines of credit that allow better control of the cash flow.
This way, with money in your pocket, negotiating better conditions for selling your production is made easier.
Considerations for obtaining credit
Here we understand some important concepts and rules for obtaining credit from BB. Take a look: the applicant's classification for obtaining credit is made by the financial institution itself.
Therefore, it is understood that this classification is carried out based on the rural producer's registration data, and defines access to different resources and programs and what rates will be applied in credit operations.
However, as far as is known, for cases in which the producer is a beginner or had crop failure, the annual gross revenue is calculated based on a year of normal production.
Producer classification Gross Annual Agricultural Revenue (RBA)
Small producer Up to R$ 360,000.00
Medium producer Above R$ 360,000.00 up to R$ 1,760,000.00
Large producer Above R$ 1,760,000.00
Working capital revolving credit for the rural producer
This aspect of street finance is very important to understand. BB Giro Agro is a revolving working capital credit for the agricultural activity, in addition to rural credit.
Therefore, in this way, with it you can purchase goods or inputs used in rural activities, whether in the production, marketing, processing or industrialization of agricultural products.
The real financing is released at the customer's request through transfer to the deposit account, with the possibility of partial releases, amortization and capital reuse.
How does the National Rural Credit System work?
The National Rural Credit System (SNCR), created in 1964 by law 4,595, has banks and credit cooperatives as its main agents, which are divided into basic, linked and articulated bodies.
- The SNCR is made up of the basic organs:
- First, it is constituted by the Central Bank of Brazil
- Soon after by Banco do Brasil S/A
- Then by Banco da Amazônia S/A
- And finally, by Banco do Nordeste S/A
In addition, the SNCR has as associated bodies the National Bank for Economic and Social Development (BNDES), private and state banks, savings banks, rural credit cooperatives and credit, financing and investment societies.
An important thing to understand in this process: as articulated institutions, the SNCR has the official bodies for regional enhancement and the provision of technical assistance.
Every year, the federal government of Brazil provides an amount for funding and marketing through the Crop Plan. This plan covers the period from July 1 of the current year to June 30 of the following year.
Interest Rates for Rural Financing
In very general terms, we can say that Rural Credit helps thousands of Brazilian producers with the necessary resources to invest in the property and in obtaining the best inputs for production.
Good news, regarding street financing
Banco do Brasil announced last Thursday, the 20th, that it will release R$ 15 billion for the pre-funding of the 2020/2021 harvest. The resource is used for the advance purchase of inputs. The institution informs that the resources are intended for rural producers to finance soy, corn, cotton, coffee, rice and sugar cane crops.
Source: Bank of Brazil
By: Wanderson Dutch
