What Is a Purpose Loan?

Target loans are the main form of capital utilization of the United States Federal Medium-term Credit Bank. The U.S. federal medium-term credit bank generally does not issue loans to borrowers directly, but through its local agencies, the Production Credit Association and other financial institutions, and can only be used for agricultural loans. The specific method is: discount the loan contract, property mortgage certificate and other bills for the production credit association or other financial institutions, and you can also purchase these bills to provide credit support to the production credit association and other institutions. ^[1]