19494126 Agriculture Finance in India 280195 2

8/19/2019 19494126 Agriculture Finance in India 280195 2

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AGRICULTURE FINANCEIN INDIA


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INTRODUCTION

Finance in agriculture is as important as development of tecnologies! Tecnical inputs can "epurcased and used "# farmer onl# if e as mone# $funds%! &ut is o'n mone# is al'a#sinade(uate and e needs outside finance or credit!

)rofessional mone# lenders 'ere te onl# source of credit to agriculture till *+,-! Te# use tocarge undul# ig rates of interest and follo' serious practices 'ile giving loans andrecovering tem! As a result. farmers 'ere eavil# "urdened 'it de"ts and man# of temperpetuated de"ts! Tere 'ere 'idespread discontents among farmers against tese practicesand tere 'ere instances of riots also!

/it te passing of Reserve &an0 of India Act *+,1. District Central Co2op! &an0s Act and LandDevelopment &an0s Act. agricultural credit received impetons and tere 'ere improvements inagricultural credit! A po'erful alternative agenc# came into "eing! Large2scale credit "ecameavaila"le 'it reasona"le rates of interest at eas# terms. "ot in terms of granting loans andrecover# of tem! Altoug te co2operative "an0s started financing agriculture 'it teir

esta"lisments in *+,34s real impetons 'as received onl# after Independence 'en suita"lelegislation 'ere passed and policies 'ere formulated! Tere after. "an0 credit to agriculture madepenomenal progress "# opening "rances in rural areas and attracting deposits!

Till *1 ma5or commercial "an0s 'ere nationali6ed in *+7+. co2operative "an0s 'ere te maininstitutional agencies providing finance to agriculture! After nationali6ation. it 'as mademandator# for tese "an0s to provide finance to agriculture as a priorit# sector! Tese "an0sundertoo0 special programs of "ranc e8pansion and created a net'or0 of "an0ing servicestrougout te countr# and started financing agriculture on large scale! Tus agriculture creditac(uired multi2agenc# dimension! Development and adoption of ne' tecnologies andavaila"ilit# of finance go and in and! In "ringing 9Green Revolution9. 9/ite Revolution9 andno' 9:ello' Revolution9 finance as pla#ed a crucial role! No' te agriculture credit. troug

multi agenc# approac as come to sta#!

Te procedures and amount of loans for various purposes ave "een standardi6ed! Among tevarious purposes 9Crop loans9 $;ort2term loan% as te ma5or sare! In addition. farmers getloans for purcase of electric motor 'it pump. tractor and oter maciner#. digging 'ells or"oring 'ells. installation of pipe lines. drip irrigation. planting fruit orcards. purcase of dair#animals and feeds


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AGRICULTURE GRO/T= RATE IN INDIA

Agriculture Gro't Rate in India GD) ad "een gro'ing earlier "ut in te last fe' #earsit is constantl# declining! ;till. te Gro't Rate of Agriculture in India GD) in te sare of tecountr#>s GD) remains te "iggest economic sector in te countr#! India GD) means te totalvalue of all te services and goods tat are produced 'itin te territor# of te nation 'itin tespecified time period! Te countr# as te GD) of around U;? *!3+ trillion in @33 and tisma0es te Indian econom# te t'elft "iggest in te 'ole 'orld!

Te gro't rate of India GD) is +!1B in @3372 @33! Te agricultural sector as al'a#s

"een an important contri"utor to te India GD)! Tis is due to te fact tat te countr# is mainl#

"ased on te agriculture sector and emplo#s around 73B of te total 'or0force in India! Te

agricultural sector contri"uted around *!7B to India GD) in @33-!

Agriculture Gro't Rate in India GD) in spite of its decline in te sare of te countr#>s

GD) pla#s a ver# important role in te all round economic and social development of te

countr#! Te Gro't Rate of te Agriculture ;ector in India GD) gre' after independence for

te government of India placed special empasis on te sector in its five2#ear plans! Furter

te Green revolution too0 place in India and tis gave a ma5or "oost to te agricultural sector

for irrigation facilities. provision of agriculture su"sidies and credits. and improved tecnolog#!

Tis in turn elped to increase te Agriculture Gro't Rate in India GD)!

Te agricultural #ield increased in India after independence "ut in te last fe' #ears itas decreased! Tis in its turn as declined te Gro't Rate of te Agricultural ;ector in India

GD)! Te total production of food grain 'as @*@ million tonnes in @33*2 @33@ and te ne8t #ear

it declined to *1!@ million tonnes! Agriculture Gro't Rate in India GD) declined "# -!@B in

@33@2 @33,! Te Gro't Rate of te Agriculture ;ector in India GD) gre' at te rate of *!B

eac #ear "et'een @33*2 @33@ and @33,2 @331! Tis so's tat Agriculture Gro't Rate in

India GD) as gro'n ver# slo'l# in te last fe' #ears!

Agriculture Gro't Rate in India GD) as slo'ed do'n for te production in tis sector

as reduced over te #ears! Te agricultural sector as ad lo' production due to a num"er of

factors suc as illiterac#. insufficient finance. and inade(uate mar0eting of agricultural

products! Furter te reasons for te decline in Agriculture Gro't Rate in India GD) are tat

in te sector te average si6e of te farms is ver# small 'ic in turn as resulted in lo'

productivit#! Also te Gro't Rate of te Agricultural ;ector in India GD) as declined due to

te fact tat te sector as not adopted modern tecnolog# and agricultural practices!

Agriculture Gro't Rate in India GD) as also decreased due to te fact tat te sector as

insufficient irrigation facilities! As a result of tis te farmers are dependent on rainfall. 'ic is

o'ever ver# unpredicta"le!


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Agriculture Gro't Rate in India GD) as declined over te #ears! Te Indian

government must ta0e steps to "oost te agricultural sector for tis in its turn 'ill lead to te

gro't of Agriculture Gro't Rate in India GD)!

T:)E; OF CREDIT;

Te Credit re(uirements of agriculture are of tree t#pes vi6!1. ;ort 2Term

2. edium 2 Term3. Long2 Term $LT%


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/e sall deal 'it long2term credit in tis article!

Long Term Credit Te period of long2term credit is generall# - to @3 #ears or even more in some special cases! Inan# industr#. long2term investment is necessar#. to create permanent assets 'ic give returnsover a period of time! Te permanent investment is not onl# necessar# for a particular industr#

"ut even for te countr#! &ecause for continuit# of production and progress of te countr#! Tisapplies to agriculture also! In Agriculture. long2term investment comprises of sin0ing 'ell. landlevelling. fencing and permanent improvements on land purcase of "ig maciner# li0e tractor'it its attacments including trolle#s. esta"lisment of fruit orcard of mango. case'.coconut. sapota $ci0u%. orange. pomogranate. fig. guava. etc! Tere are man# oter items oflong2term capital investment! Investment once made in te "eginning continious to give returnsover a long period! Fruit orcards particularl# do not give an# income in te first 1 2 - #ears as incase of oter seasonal crops! ;o te e8penditure incurred in te first 12- #ears "ecomes acapital cost!

All te long2term investments mentioned a"ove re(uire large amounts of funds! Altoug te#ave good potential to give returns in future. individual farmers ave no financial capacit# to

ma0e suc costl# investments from teir o'n funds "ecause te# ave no savings or ver#little savings! Terefore. te# ave to resort to "an0 "orro'ing to meet teir suc needs! Tefinancial criteria terms and conditons procedures of granting L!T!loans are altogeter differentfrom sort2term loans Even te "an0 or agenc# providing LT loans is separatedue to itsparticular mode or s#stem of raising capital and graign!

Land Development &an0s Te special "an0s providing LT Loans are called Land Development &an0s $LDA%! Te istor#of LD&4s is (uite old! Te first LD& 'as started at ang in )un5a" in *+@3! &ut te real impetusto tese "an0s 'as received after passing te Land ortgage &an0s Act in *+,34s $LD&4s 'ereoriginall# called Land ortgage &an0s%! After passing tis Act LD&4s 'ere started in differentstates of India!

;tructure

Tese &an0s ave t'o2tier structure1. )rimar# Land Development &an0 at district level 'it "rances at talu0a level!

2. Control or ;tate Land Development &an0! All primar# Land Development &an0s are federatedinto Central Land Development &an0 at te ;tate Level! In some ;tates. tere is Unitar#structureH 'erein. tere is onl# one ;tate Land Development &an0 at te state level operatingtroug its "rances and su"2"rances at district and "elo' levels!

Raising Funds Te main function of raising funds is carried out "e te Central or ;tate Land Development

&an0 'ic can reall# deal 'it te mone# mar0et of te countr# effectivel# and advance loansto primar# LD&4s! Te sources of funds of ;tate LD&4s are21. ;are capital!

2. Issue of de"entures3. Loans from NA&ARD4. Reim"ursements of su"sidies from te Govt!5. Oter funds!


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Issue of de"entures is te main source of funds for te LD&4s! De"entures is a &ond4 conve#ingand ac0no'ledging te de"t and also containing te provision of promise for pa#ment of interestat stipulated rate and return of te principal amount! Te period of de"entures varies from to*- #ears! As LD&4s re(uire funds of longer duration to advance LT loans to "orro'ers. tede"enture is a convenient instrument of raising funds! &ecause it guarantees tat funds 'illremain 'it te &an0s for a specified period!

Tere are tree t#pes of de"entures21. Regular de"entures2. Rural de"entures

3. ;pecial development de"entures!

Tese de"entures are mostl# purcased "# financial institutions li0e LIC. Commercial &an0s. Co2

op! &an0s. NA&ARD. and ;tate Govts! As tere is limited response from te pu"lic! Te ;tate

Govt! give incentive su"sidies for man# development activities "# individual farmer including

purcase of tractor! Te amounts of su"sidies are reim"ursed to te LD&4s!

Interest rate Te rates of interest for LT Loans are generall# lo' and 'itin te pa#ing capacit# of

farmers! Te# are around ** to *@B!

Loan )rocedure Te &ranc offices receive applications from te prospective "orro'er! Ten AgriculturalFinance Officer or Inspector scrutinises tese applications. te# visit places of te applicationand ascertain te purpose of "orro'ing. verif# te genuineness of te proposal and it economicvia"ilit#. repa#ing a"ilit# of te farmers. ade(uac# of securit#.etc! After completing toseformalities. te loan is granted "# te appropriate autorit# at appropriate level depending uponte delegation of po'ers "# te &an0s!

CRO) LOAN

Crop loan is a sort term credit and is generall# o"tained from primar# credit co2op! ;ociet# of avillage or also from commercial "an0! Te period of loan is a"out one #ear e8cept for sugarcane for 'ic te period is * monts! Tere are t'o criteria for granting crop loan!

1. One tird of gross value2. Cost of cultivation!

1. One tird of gross value approac ta0es into account te #ield and price of te crop. itscost of cultivation and famil# e8penditure! If te gross value is more. more amount ofloan "ecomes availa"le! For e!g! Rice!

I II

:ield $J!% @3 @-

)rice $Rs


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One tird $Rs!% @33 ,,,3


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2. Tus in second situation farmer is entitled for Rs!,,,3 per ectare 'ic is iger tan inte first situation! Tus tis metod ta0es into account te productive aspect of a crop!

3. In cost of cultivation. direct paid2out costs are onl# considered! Te# include items. li0eseeds. manures. fertili6ers. pesticides. diesel


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AGRICULTURAL LOAN;

Agricultural loans are availa"le for a multitude of farming purposes! Farmers ma# appl#for loans to "u# inputs for te cultivation of food grain crops as 'ell as for orticulture.

a(uaculture. animal us"andr#. floriculture and sericulture "usinesses! Tere are also specialloans to finance te purcase of agricultural maciner# suc as tractors. arvesters and truc0s!Construction of "iogas plants and irrigation s#stems as 'ell as te purcase of agricultural landma# also "e financed troug special t#pes of agricultural finance!

COO)ERATIKE AGRICULTURAL &AN

*! National &an0 for Agriculture and Rural Development or NA&ARD 2 isresponsi"le for refinance dis"ursement to commercial "an0s. ;tate cooperative "an0s.;tate cooperatives. rural development "an0s. Regional Rural &an0s $RR&s% and oter eligi"le financial institutions! It also sanctions mone# troug its Rural InfrastructureDevelopment Fund for pro5ects covering irrigation. rural roads and "ridges. ealt andeducation. soil conservation and drin0ing 'ater scemes! NA&ARD also offers aisan Credit Card ;ceme and crop loans under te Rastri#a risi &ima :o5ana!


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&an0s and RR&>s introduced te isan Credit Card ;ceme of NA&ARD in teir areas of operation! In tis sceme eligi"le farmers are provided 'it a isan Credit Card and apass"oo0 or card2cum2pass "oo0! Te revolving cas credit facilit# allo's an# num"er of 'itdra'als and repa#ments 'itin te limit! Tis limit is fi8ed on te "asis of operationalland olding. cropping pattern and te scale of finance! ;u"2limits ma# "e fi8ed at tediscretion of "an0s!

Tis isan Credit Card is valid for , #ears su"5ect to annual revie'! As incentive for goodperformance. credit limits ma# "e enanced to ta0e care of increase in costs. cange incropping pattern. etc! Eac dra'l sould "e repaid 'itin a ma8imum period of *@monts! Conversion or resceduling of loans is allo'ed in case of damage to crops dueto natural calamities! ;ecurit#. margin. rate of interest and oter details are fi8edaccording to R&I norms!

@! &iar ;tate Co2operative &an0 Limited $&;C&% 2 Offers a range of loansand financial scemes to agriculturalists!

,! =ar#ana ;tate Co2operative Ape8 &an0 Limited $=ARCO&AN% 2 Te"an0 offers crop loans. isan Credit Cards. cas credit against #potecation of

stoc0s and interim finance "# 'a# of cas credit!

4. National Federation of ;tate Co2operative &an0s Limited $NAF;CO&%2 Tis federation offers a range of agricultural loans troug mem"er ;tate Cooperative&an0s. District Central Cooperative &an0s and )rimar# Agricultural Cooperative;ocieties!

5. Orissa ;tate Co2operative &an0 Limited $O;C&% 2 Te "an0 as introduced isan Credit Cards in te ;!T! Cooperative Credit ;ector! It also organi6esseminars on agri finance! O;C& as * Central Cooperative &an0s and around *3mini "an0s in different districts of Orissa!

7! Repatriates Co2operative Finance and Development &an0 Limited 2Tis "an0 does not ave an# specific agricultural loan. "ut offers a range of financialproducts tat can "e accessed "# people 'o 'is to develop agriculture and relatedactivities!

http://india.gov.in/outerwin.php?id=http://biharbank.bih.nic.in/loan.htmhttp://india.gov.in/outerwin.php?id=http://harcobank.nic.in/fagri.htmlhttp://india.gov.in/outerwin.php?id=http://www.nafscob.org/about_f.htmhttp://india.gov.in/outerwin.php?id=http://www.nafscob.org/about_f.htmhttp://india.gov.in/outerwin.php?id=http://www.oscb.coop/highlights/Kishan.asphttp://india.gov.in/outerwin.php?id=http://www.oscb.coop/highlights/Kishan.asphttp://india.gov.in/outerwin.php?id=http://mha.nic.in/REPCO%20BANK.htmhttp://india.gov.in/outerwin.php?id=http://harcobank.nic.in/fagri.htmlhttp://india.gov.in/outerwin.php?id=http://www.nafscob.org/about_f.htmhttp://india.gov.in/outerwin.php?id=http://www.oscb.coop/highlights/Kishan.asphttp://india.gov.in/outerwin.php?id=http://mha.nic.in/REPCO%20BANK.htmhttp://india.gov.in/outerwin.php?id=http://biharbank.bih.nic.in/loan.htm


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! )un5a" ;tate Cooperative Agriculture Development &an0 Ltd 2 Initiall#.te "an0 onl# gave farmers loans to pa# off old de"ts and purcase land! Toda#. te"an0 provides loans for various purposes li0e improvement of al0aline and saline lands.

purcase of tractors. installing tu"e 'ells and oter modern agricultural e(uipment! Italso offers financial scemes for poultr# development. dair# development. orticulture.floriculture. seep rearing and inland fiseries!

! Andra )rades ;tate Cooperative &an0 Limited $A)CO&% 2 as a loanportfolio tat covers crop loans. medium term loans and long term loans for agriculturalpurposes! It also supports government sponsored District Rural Development Agenc#pro5ects troug IRD) loans and cooperative sugar factories. spinning mills. 'eaver>ssocieties. emplo#ees> cooperative credit societies and oter organi6ations! A)CO& asalso e8tended finance to ape8 cooperative institutions in te ;tate suc as A)CO.ARFED and GCC!

http://india.gov.in/outerwin.php?id=http://punjabgovt.nic.in/government/AgricultureDevelopmentBank.htmhttp://india.gov.in/outerwin.php?id=http://apcob.ap.nic.in/dfinance.htmlhttp://india.gov.in/outerwin.php?id=http://punjabgovt.nic.in/government/AgricultureDevelopmentBank.htmhttp://india.gov.in/outerwin.php?id=http://apcob.ap.nic.in/dfinance.html


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NATIONALI;ED &AN;

*! Allaa"ad &an0 2 offers te isan Credit Card and isan ;a0ti :o5ana ;ceme! Te isan Credit Card is a uni(ue sceme for farmers troug 'ic te# can dra' acas loan for crop production as 'ell as domestic needs from te card2issuing "ranc'itin te sanctioned limit! Te isan ;a0ti :o5ana provides farm investment credit.as 'ell as personal


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7! Canara &an0 2 provides isan Credit Cards! Limits up to -3.333 ave no margin'ile tose a"ove -3.333 ave a margin of *- to @3 percent! Oter tan tis. Canara&an0 provides a 'ide arra# of financial scemes for different agricultural purposes!

! Central &an0 of India 2 Te Central isan Credit Card is a credit service providedto farmers on te "asis of teir oldings for purcasing agricultural inputs! Onl# tosefarmers aving a good trac0 record for te past @ #ears 'it te "an0 as a "orro'er or depositor and 'o are not defaulters to an# credit institution 'ould "e considered forloans!

! Corporation &an0 2 offers a range of loan scemes to farmers! Te# are te Corp

Gram itra :o5ana. Corp Artias Loan :o5ana. Corp isan Tie2Up Loan ;ceme. Corpisan Farm ecanisation ;ceme and Corp isan Keicle Loan :o5na!

+! Dena &an0 2 Dena &an0 as sponsored @ Regional Rural &an0s namel# DenaGu5arat Gramin &an0 in Gu5arat and Durg Ra5nandgaon Gramin &an0 $DRG&% inCattisgar! Te "an0 as set up a Rural Development Foundation for trainingunemplo#ed #out in rural areas! Oter financial scemes of te "an0 are te Dena;'acc Gram :o5ana. Dena isan Gold Credit Card ;ceme and te Dena &umieenisan Credit Card ;ceme!

*3! Indian &an0 2 as a 'ide range of scemes for agriculturalists suc as ;'aro5gar Credit Card. Gramin aila ;o'"ag#a ;ceme. isan &i0e Loan ;ceme. :uva isan

Kid#a Nidi :o5ana and Indian &an0 isan Card ;ceme!

**! Indian Overseas &an0 2 offers agri "usiness consultanc# services tat includeconducting feasi"ilit# and mar0et studies. preparation of detailed pro5ect reports andformulation of rea"ilitation pac0ages for sic0 agro units!

http://india.gov.in/outerwin.php?id=http://www.canbankindia.com/ruralsocial/PrioritySector/agriculture-ind.htmlhttp://india.gov.in/outerwin.php?id=http://www.canbankindia.com/ruralsocial/PrioritySector/agriculture-ind.htmlhttp://india.gov.in/outerwin.php?id=http://www.centralbankofindia.co.in/home/product/credit/centkisan.htmhttp://india.gov.in/outerwin.php?id=http://www.centralbankofindia.co.in/home/product/credit/centkisan.htmhttp://india.gov.in/outerwin.php?id=http://www.corpbank.com/asp/0100text.asp?presentID=147&headID=168http://india.gov.in/outerwin.php?id=http://www.corpbank.com/asp/0100text.asp?presentID=147&headID=168http://india.gov.in/outerwin.php?id=http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,138http://india.gov.in/outerwin.php?id=http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,138http://india.gov.in/outerwin.php?id=http://www.canbankindia.com/ruralsocial/PrioritySector/agriculture-ind.htmlhttp://india.gov.in/outerwin.php?id=http://www.centralbankofindia.co.in/home/product/credit/centkisan.htmhttp://india.gov.in/outerwin.php?id=http://www.corpbank.com/asp/0100text.asp?presentID=147&headID=168http://india.gov.in/outerwin.php?id=http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,138


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*@! Oriental &an0 of Commerce 2 It as t'o agricultural pro5ects 2 te Grameen)ro5ect and te Compreensive Killage Development )rogramme! Te Grameen)ro5ect involves dis"ursing small loans ranging from Rs! - on'ards to mostl# 'omen!Training is also provided in villages in using locall# availa"le ra' material to producepic0les and 5ams! Te Compreensive Killage Development )rogramme focuses onproviding an integrated pac0age of rural finance to villagers to "uild up teir village!

*,! )un5a" and ;ind &an0 2 offers a range of financial scemes for farmers li0e teMimidara Credit Card. tractor finance sceme. drip irrigation sceme. eti Ud#oga6ana :o5ana. vermi composting sceme. orticulture clinic and private veterinar#clinic 'it dair# unit sceme!

*1! )un5a" National &an0 2 Tis "an0 as a special 'e"site called )N& risi foragriculturalists! It gives details on crop practices. plant protection. farm maciner#.mar0et prices and oter farming ne's and activities! Te 'e"site also provides a list of financial scemes offered "# )un5a" National &an0 on production credit. investmentcredit. composite loans. animal us"andr# and farm mecani6ation!

*-! ;#ndicate &an0 2 offers a 'ide range of agricultural loan products suc as te;#nd ai isan Loan ;ceme. e'el Loan ;ceme for Agriculture. ;#ndicate Farm

=ouse ;ceme. Finance for =i2tec Agriculture. Development of IrrigationInfrastructure sceme. ;#ndicate @


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*! United &an0 of India 2 Te range of financial scemes offered to agriculturalists

include te United risi Lagu )ari"aan :o5ana. United risi ;aa#a0 :o5ana. UnitedGram#asree :o5ana. Gramin &andaran :o5ana and te United &umieen isanCredit Card!

*+! Ki5a#a &an0 2 Tis "an0 offers one compreensive financial sceme 0no'n as teKi5a#a risi Ki0as $KK% ;ceme! Tis sceme provides a simple pac0age to farmersto meet entire agricultural credit re(uirements suc as crop production. investment creditand consumption credit! All farmers including o'ners. tenant cultivators. leased landfarmers and sarecroppers are eligi"le for tis sceme!

;C=EE; FOR AGRICULTURE FINANCE

*! ;&T I;AN GOLD CARD ;C=EE $General purpose Agriculture Term

Loan%

ELIGI&ILIT:1. Farmers aving good trac0 record of repa#ment for te last t'o #ears!

2. Farmers 'o ave closed teir loan account 'itout default and not our current "orro'ers!3. Farmers 'o ave defaulted in repa#ment "ut closed te Loan 'itin te stipulated

repa#ment period!4. Farmers 'o are maintaining deposits 'it te &an0!

5. Good "orro'ers of oter "an0s provided te# li(uidate teir dues 'it oter "an0s!6. Good farmers 'o ave not availed loans from an# "an0!

)UR)O;ETe "orro'er is at li"ert# to utili6e -3B of te

amount for an# purpose. including

consumption purpose and purcase of land!


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AOUNT OF LOANTe amount of loan is limited to five times te annual farm income including income from alliedactivities or -3B of te value of te land offered as collateral securit#. 'icever is less. su"5ectto a ma8imum of Rs!*3 la0!

RATE OF INTERE;T

Interest rate ranges from *B "elo' )LR!

;ECURIT:=#potecation of crops and assets. if an#. created out of "an0 finance and e8isting

mova"le assets suc as milc animals. pump sets etc!Te loan 'ill "e secured "# e(uita"le mortgage of properties 'ort dou"le te loan

amount. or term deposit receipts. LIC policies of ade(uate surrender value. N;Cscompleted loc0 in period or more etc!

DI;&UR;EENTCas dis"ursals are allo'ed to te full e8tent of te credit limit!

RE)A:ENT

Te repa#ment period sall "e *3 #ears! Te due date of te instalment sall "e fi8ed in suc a'a# to coincide 'it te date of generation of income!

@! I;AN CREDIT CARD ;C=EE

ELIGI&ILIT:

All agriculturists 'o are in need of sort term production re(uirements! AT facilit# and)ersonal Accident Insurance ;ceme for life up to Rs!-3333


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Running Cas Credit account for ,7 monts su"5ect to annual revie' and total annual credit

sould e8ceed annual de"it!

,! =OE;TEAD FARING

)UR)O;E A sceme for financing farmers practicing mi8ed cropping < inter cropping along 'it alliedactivities to ena"le tem to underta0e cultivation of various crops in a more integrated 'a#! Tesceme provides te farmers 'it sufficient 'or0ing capital re(uired for teir omestead farming$i8ed cropping along 'it allied activities% "# fi8ing scale of finance "ased on land olding tomeet te cost of entire farming activities!

AOUNT OF LOANTe farmers 'o o'n cultivated land "elo' one acre "e given te scale of finance on pro rata"asis at te rate of Rs!13333


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RE)A:ENTRepa#ment of loan 'ill "e in (uarterl#


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RE)A:ENTRepa#ment sould coincide 'it arvesting and mar0eting or at te time generation of

income from te sceme!

! ;C=EE FOR CULTIKATION OF KANILLA

ELIGI&ILIT: All agriculturists are eligi"le!

)UR)O;E;ceme for financing cultivation of Kanilla. a cas crop. gaining ground in te ;tate of erala!

AOUNT OF LOAN Amount of finance 'ill "e Rs!@-3333


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ELIGI&ILIT:a! Farmers < traders depositing farm produce in te 'areouses of te central < state'areousing corporations!a! ;ceme 'ill "e operative in arnata0a. Andra )rades. Tamilnadu erala!

)UR)O;E1. To protect te farmers from te compulsion to sell teir produce immediatel# after arvest of produce despite an adverse mar0et!2. To finance farmers and traders against 'areouse receipt!

AOUNT OF LOAN3B of te value of te 'areouse receipt. valued at te mar0et value or 3B of te mar0et

price advised "# Agri! Dept. =O 'icever is less!

RATE OFINTERE;T FarmersUp to Rs!, la0 2 ,!-3B "elo' )LR +!-3B

A"ove Rs!, la0 2 @!-3B "elo' )LR *3!-3BTraders@!-3B "elo' )LR *3!-3B $Irrespective of te limit%

RE)A:ENTOn demand < 7 monts 'ic can "e e8tended up to *@ monts su"5ect to satisfactor# self life <

mar0et condition!

*3! AGRI! LOAN TO NON2RE;IDENT INDIAN;

ELIGI&ILIT:

Agricultural advances are availa"le to te resident famil# mem"ers $means spouse. fater.moter. "roter. sister etc!% of Non2Resident Indians for land2"ased activities in respect of teland eld "# tem in India su"5ect to

1. te loan sould "e need "ased and te total land olding of te Non2Resident Indian.in individual name or 5ointl# 'it oters. sould not e8ceed - a!

2. Te loan amount sall not "e used for ac(uiring an# additional land!

)UR)O;ETo finance farmers onl# for land2"ased activities and to carr#on agricultural activities on te

e8isting land!

AOUNT OF LOAN

Te ma8imum amount of te loan 'ill "e need "ased!

RATE OF INTERE;TInterest rate ranges from @!-3B "elo' to *!-3B a"ove &)LR for various sort2term limits and

from *!-B "elo' to @!33B a"ove &)LR for various long2term limits!

RE)A:ENT


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Te loan can "e repaid out of te income generated from te agricultural activities or

remittances from a"road or "# de"it to teir NRE


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*,! AGRICULTURE GOLD LOANELIGI&ILIT:

All individual farmers underta0ing cultivation or oter activities including allied activities are

eligi"le for sort2term finance!

)UR)O;ETo meet genuine credit re(uirements of farming including allied activities. repairing

of e(uipments and consumption needs etc!

AOUNT OF LOANTe eligi"le loan amount sould "e assessed "ased on te area under cultivation. crops$s%

raised. scale of finance and not in relation to te value of gold offered as securit#!

RATE OF INTERE;TInterest rate ranges from @!-3B "elo' to *!-3B a"ove &)LR for various limits! For 'or0ing

capital loans li0e ACC


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*-! CON;TRUCTION < RENOKATION < EQ)AN;ION OF

RURAL GODO/N

ELIGI&ILIT:Te pro5ect for construction of rural godo'ns can "e ta0en up "# Individuals. Farmers. Group of

farmers


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&ot te co2operative "an0s advance creditmostl# to agriculture! First "an0 advancessort2term and medium term loans 'ile te

second "an0 advances long2term loans! TeReserve &an0 of India as te Central "an0 ofte countr# too0 lead in ma0ing creditavaila"le to agriculture troug tese "an0s "#la#ing do'n suita"le policies!

Documents

19494126 Agriculture Finance in India 280195 2