Within the framework of the "Preferential Agrocredit" project, the Rural Development Agency will cover the interest on loans issued for the purpose of cultivating annual crops.

Under this subcomponent, the Rural Development Agency will co-finance the interest on the issued loan for no more than 12 months at an annual rate of 9%. The maximum annual interest rate for the loan is set at 18%. The loan amount issued per beneficiary is determined to be no less than 10,000 GEL and no more than 100,000 GEL, while for grain crops, the loan amount ranges from 10,000 GEL to 300,000 GEL.

Within the subcomponent, loans are issued to finance one operational year’s expenses for annual crops (vegetables, grains, and melons) and alfalfa. Specifically, it aims to reduce the current expenses for growing annual crops (vegetables, grains, and melons) at all stages of plant care and cultivation. This includes the purchase of seeds, seedlings, fertilizers, and biological plant protection products. The program also covers expenses related to labor, rental of agricultural machinery, and fuel consumption.

The subcomponent defines the maximum cost per hectare for the cultivation and maintenance of specific annual crops and alfalfa within one operational year. Information regarding this is available on the Rural Development Agency's website.

The "Preferential Agrocredit" project is accessible to individuals, individual entrepreneurs registered in accordance with Georgian legislation, and legal entities registered in accordance with Georgian legislation (excluding state/municipal enterprises).

The "Financing for Annual Crops" subcomponent was added to the project in 2020.

The "Preferential Agrocredit" project has been implemented by the Rural Development Agency for over 10 years. The project's main objectives are to provide farmers and agribusiness participants with affordable, long-term financial resources and improve the production, processing, storage, and marketing processes in the agricultural sector.