1. AGRICULTURAL FANANCE
Presented by
Prof.M.J.KADAM

2. AGRICULTURAL FANANCE INTRODUCTION NEED TYPES - a) ON THE BASIS OF TIME
b) ON THE BASIS OF PURPOSE
c) ON THE BASIS OF SOURCES
STRUCTURE

3. NEED AND TYPES OF AGRI. CERDIT
a) ON THE BASIS OF TIME
b) ON THE BASIS OF PURPOSE
c) ON THE BASIS OF SOURCES

4. AGRICULTURAL CERDIT
ON THE BASIS OF TIME
SHORT TERM CREDIT- (LESS THAN 15 MONTHS) For purchasing seeds, fertilizers, pesticides, wage payments etc.
MEDIUM TERM CREDIT- (15 MONTHS TO 5 YEARS) For small implements like repair and construction of wells
LONG TERM CREDIT- (MORE THAN 5 YEARS)
For Permanent land improvement – buying land, repayment of old debts, long term improvement in Agriculture

5. AGRICULTURAL CERDIT ON THE BASIS OF PURPOSE PRODUCTIVE CREDIT
CONSUMPTION CREDIT
UNPRODUCTIVE CREDIT

6. AGRICULTURAL CREDIT ON THE BASIS OF SOURCES 1
AGRICULTURAL CREDIT ON THE BASIS OF SOURCES 1. NON- INSTITUTIONAL CREDIT & 2. INSTITUTIONAL CREDIT
-..

7. NON- INSTITUTIONAL CREDIT
MONEY LENDERS, RELATIVES, FRIENDS etc. Main source of Agri-finance in before Planning period (1950 – 92%) money lenders – 69.7% in % in

8. MERITS AND DEMERITS OF NON- INSTITUTIONAL CREDIT
MERITS 1. EASY TO OBTAIN 2. SIMPLE PROCEDURE 3. EASY ACCESS 4. NO RESTRICTIONS 5. CONSUMPTION LONES

9. DEMERITS 1. EXORBITANT RATES OF INTEREST 2. INDEBTEDNESS
3. LOSS OF LAND
4. MALPRACTICES
5. EXPLOITATION
6. ORIGIN OF BONDED LABOUR

10. STRUCTURE OF INSTITUTIONAL CREDIT
GOI - RBI
NABARD
COMMERCIAL
BANKS
CO-OPERATIVE CREDIT SOCIETIES
REGIONAL RURAL BANKS

11. NABARD NATIONAL BANK FOR AGRICULTURAL AND RURAL DEVELOPMENT -1982
APEX BANK FOR RURAL CREDIT AND DEVELOPMENT
SHARE CAPITAL CONTRIBUTED BY GOVT.OF INDIA AND RBI
HEAD OFFICE – MUMBAI ,16 REGIONAL OFFICES

12. FUNCTIONS OF NABARD SUAPEX BODY FOR RURAL DEVELOPMENT
PERVISING CO-OPERATIVES
MEDIUM AND LONG TERM CREDIT FOR STATE CO-OPERATIVES AND RRBs
SUGGESTIONS TO GOVERNMENT
RESEARCH AND DEVELOPMENT

13. COMMERCIAL BANKS AND AGRICULTURAL FINANCE
GROTH AFTER NATIONALIZATION
SHORT TERM FINANCE -FOR AGRICULTURE
MEDIUM AND LONG TERM -FOR AGRICULTURE

14. FINANCE TO CO-OPERATIVES LEAD BANK SCHEME –
DIRECT FINANCE –
FOR LAND DEVELOPMENT
INDIRECT FINANCE –
FINANCE TO CO-OPERATIVES
LEAD BANK SCHEME –
FOR DEVELOPMENT OF DISTRICT LEVEL

15. REGIONAL RURAL BANKS ESTABLISHED-1975 REGIONAL BASE RURAL ORIENTED
SPONCERD BY SCHEDULED COMMERCIAL BANKs
SUPPLY CERDIT TO DEPRIVE SECTORS

16. FLOW OF INSTITUTIONAL CREDIT PERCENTAGE SHARE
AGENCY/ YEAR
1970
1980
2001
2010
CO-OPERATIVES
77.0
55.9
39.0
20.0
COMMERCIAL BANKS
21.0
38.0
53.0
68.0
RRBs
2.0
5.2
8.2
12.0

17. STRUCTURE OF CO-OPERATIVE FINANCE
Long Term Credit
Short and Medium Term credit
STATE LAND Dev.BANK
(STATE LEVEL)
CENTRAL CO-OP. BANKS
(DISTRICT LEVEL)
PRIMARY LAND Dev.BANK
(VILLAGE LEVEL)
PRIMARY Agri.CO-OP.SOCIETIES
FARMERS
FARMERS
FARMERS

18. THANK YOU