Agriculture financing

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Agriculture financing

  1. 1. AGRICULTRE FINANCING<br />SatrujeetSahoo<br />10DM092<br />
  2. 2. Agriculture financing is of two types:-<br /> (i) Direct finance to farmer for agriculture.<br /> (ii) Indirect finance to agriculture. <br />
  3. 3. Short- term loans for raising crops. <br /> In addition, advances up to Rs5 lakh to farmers against agricultural produce for a period not exceeding 12 months, where the farmers were given crop loans for raising the produce, provided the borrowers draw credit from one bank.<br />Direct finance to farmers for agricultural purposes <br />
  4. 4. Medium and long-term loans are also provided directly to farmers for financing production and development needs.<br />Purchase of agricultural implements and machinery.<br /> Development of irrigation potential through construction tube wells, boring wells, construction of lift irrigation project etc.<br /> Construction of farm buildings and structures like bullock sheds, tractor sheds etc.<br />Continues…<br />
  5. 5. (d) Construction and running of storage facilities.<br />(e) Payments of irrigation charges.<br />(f) Development of dairying and animal husbandry.<br />(g) Financing to small and marginal farmers for purchase of land for agricultural purposes. <br />Continues…..<br />
  6. 6. Loans to farmers for purchase of shares in co-operative sugar mills and other agro based processing unit.<br /> Loans to farmers through PACS, FSS and LAMPS. <br /> Credit for financing the distribution of fertilizers, pesticides, seeds etc.<br /> Finance for hire-purchase schemes for distribution of agricultural machinery and implements.<br />Indirect finance to agriculture<br />
  7. 7. (e) Subscriptions to bonds issued by NABARD with objectives of financing exclusively for agricultural activities. <br />(f) Loans to individuals, institutions or organizations who under take spraying operations.<br />(g) Lending to Non Banking Financial Companies(NBFCs) for lending to agriculture.<br />Continues…<br />

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