---
title: What are the collateral types?
description: "Land: Land used as collateral typically refers to real estate property owned by the borrower. This can include agricultural land, residential property, or commercial plots. The value of the land is ap"
---

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# What are the collateral types?

**Land:** Land used as collateral typically refers to real estate property owned by the borrower. This can include agricultural land, residential property, or commercial plots. The value of the land is appraised based on its market value, location and size. 

**Harvest:** Harvest collateral refers to the crops that a farmer grows, such as grains, vegetables, fruits, and other agricultural produce. The anticipated value of the harvest is based on stock exchange prices or agreement between farmer and buyer.

**Livestock:** Livestock collateral involves using animals such as cattle, sheep, goats, or poultry owned by the borrower. The value is based on the type, number, age and overall condition of the animals and prices in the market. 

**Machinery:** Machinery collateral includes equipment and machinery such as tractors, combine seeders, plows, harvesters, excavators and other agricultural machinery. The value is based on the condition, age, and market value of the equipment. Valuations are made by certified assessor.

**Financial:** Financial collateral refers to subsidies which include government grants or financial aid provided to support and subsidize farmers.

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