Kavitha Project Full

A STUDY ON ROLE OF BANK IN AGRICULTURAL FINANCING WITH
SPECIAL REFERENCE TO PLD BANK KOLAR.
CHAPTER-1
INTRODUCTION
AGRICULTURE FINANCE
Finance in agriculture is as important as development of technologies. Technical inputs can
be purchased and used by farmers only if sufficient money (funds) is available with
farmers. Most of the times farmers suffer from the problem of inadequate financial
state. This situation leads to borrowing from an easy and comfortable source.
Professional money lenders were the only source of credit to agriculture till 1935.
They used to charge unduly exorbitant rates of interest and follow serious practices
while giving loans and recovering them. As a result, farmers were heavily burdened
with debts and many of them are left with perpetuated debts. There were widespread
discontents among farmers against these practices and there were Instances of riots
also.
With the passing of Reserve Bank of India Act 1934, District Central Cooperative
Banks and Land Development Banks, agricultural credit received impetus and there
were improvements in agricultural credit. A powerful alternative agency came into
being through the initiative of the government. Large-scale credit was available with
reasonable rates of interest at easy terms, both in terms of granting loans and recovery
of them. The cooperative banks advance credit mostly to agriculture. First bank
advanced short-term and medium term loans while the second bank advanced long-term
loans. The Reserve Bank of India as the Central bank of the country took lead in making
credit available to agriculture through these banks by laying down suitable policies.
Although the cooperative banks started financing agriculture with their establishments in
1930.s real impetus was received only after Independence when suitable legislations were
passed and policies were formulated. Thereafter, bank credit to agriculture has made a
phenomenal progress by opening branches in rural areas and attracting deposits.
Till 14 major commercial banks were nationalized in 1969, cooperative banks were the
main institutional agencies providing finance to agriculture. After nationalization, it was
made mandatory for these banks to provide finance to agriculture as a priority sector.
These banks undertook special programs of branch expansion and created a network of
GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 1
banking services throughout the country and started financing agriculture on large scale.
Thus agriculture credit acquired multi-agency dimension. In bringing "Green Revolution",
"White Revolution" and now "Yellow Revolution" finance has played a crucial role. Now the
agriculture credit, through multi agency approach has come to stay
. The procedures and amount of loans for various purposes have been standardized. Among
the various purposes "Crop loan" (Short-term loan) has the major share. In addition, farmers
get loans for the purchase of electric motor with pump, tractor and other machinery, digging
wells or boring wells, installation of pipe lines, drip irrigation, planting fruit orchards,
purchase of dairy animals and feeds/fodder for them, poultry, sheep/goat keeping and for
many other allied enterprises.
MEANING
"Agricultural finance is the study of financing and liquidity services credit provides to
farm borrowers. It is also considered as the study of those financial intermediaries who
provide loan funds to agriculture and the financial markets in which these intermediaries
obtain their loan able funds.
DEFINITION
Murray (1953) defined agricultural finance as “an economic study of borrowing funds by
farmers, the organization and operation of farm lending agencies and of societies interest in
credit for agriculture.”
Tandon and Dhondyal (1962) defined agricultural finance “as a branch of agricultural
economics, which deals with and financial resources related to individual farm units”.
IMPORTANCE OF AGRICULTURE FINANCE

Agricultural production in this country depends upon millions of small farmers. Their
intensity, effort and efficiency have helped in raising yields per acre.
Finance in agriculture act as a key to farmers. But farmers money is always inadequate and he
needs outside finance or credit. Because of inadequate financial resources and absence of
timely credit facilities at reasonable rates, many of the farmers, are unable to go in for
improved seeds and manures or to introduce better methods or techniques.

The farming community must be kept informed about the various sources of
agriculture finance. Agricultural finance possesses its usefulness to the farmers, lenders and
extension workers. The knowledge of lending institutions, their legal and regulatory
environment helps in selecting the appropriate lender who can adequately provide the credit
with terms and related services needed to finance the farm business.
ROLE OF AGRICULTURE FINANCE

Agriculture plays a crucial role in the development of the Indian economy. It accounts for
about 19 per cent of GDP and about two thirds of the population is dependent on this sector.
Agricultural finance is a subset of rural finance dedicated to financing agricultural related
activities such as input supply, production, distribution, wholesale, processing and marketing.
Financial service providers face distinct challenges when dealing with this sector. For
example, the seasonal nature of production and the dependence on biological processes and
natural resources leave producers subject to events beyond their control such as droughts,
floods or diseases.
The modern agriculture has increased the use of inputs specially for seed, fertilizers,
irrigational water, machineries and implements, which has increased demand for agricultural
credit. The adoption of modern technology, which is capital intensive, has commercialized
agricultural production in India. Besides, the farmers.income is seasonal while his working
expenses are spread over time. In addition, farmer's inadequate savings require the uses of
more credit to meet the increasing capital requirements. Furthermore, credit is a unique
resource, since it provides the opportunity to use additional inputs and capital items now and
to pay for them from future earnings.
The rural population in India suffers from a great deal of indebtedness and is subject to
exploitation in the credit market due to high interest rates and the lack of convenient access to
credit. Rural households need credit for investing in agriculture and smoothening out seasonal
fluctuations in earnings. Since cash flows and savings in rural areas for the majority of
households are small, rural households typically tend to rely on credit. Rural households need
access to financial institutions that can provide them with credit at lower rates and at
reasonable terms than the traditional money-lender and thereby help them avoid debt-traps
that are common in rural India.

Timely and adequate agricultural credit is important for the increase in fixed and working
capital for farmers. In order to provide sufficient credit to the farmers, many institutional and
non-institutional agencies are working. Under institutional agencies cooperative, commercial,
regional rural banks and different Government organizations are supplying credit to the needy
farmers on priority basis.
STATUS OF AGRICULTURE FINANCE

Credit in conjunction with modern agricultural technologies has ushered in the agricultural
development across Indian regions. The liberal credit supply by the lending institutions
enabled rapid infrastructural growth across and thereby improved the farm level credit
absorption capacity. Although credit has played vital role in agricultural development yet
regional and farm-category wise disparity has also taken place. Infact, some of the states with
better natural resource base have progressed well while some others lagged far behind.
Likewise, some farmers with better resource endowments and access to financial and other
institutions have marched faster while others could not do so. Furthermore, multiplicity of
lending institutions together with the liberal deployment of credit through various ongoing
schemes including micro-financing have saved rural dwellers from the clutches of money
lenders. Yet, non-institutional credit agents still survive as they follow the canons of
financing.
.
STRATEGY TO IMPROVE AGRICULTURE FINANCE
The achievement of targets in the agricultural sector which covers production of food and
essential raw material like cotton, jute and oilseeds, ought not to be allowed to suffer for want
of adequate credit.
However, specific items of productive work and rates of interest need to be considered as an
integral part of the Plan. For providing these facilities all the existing agencies like money
lenders, commercial banks, cooperatives and the State have to be integrated and harnessed to
a common purpose. Such a comprehensive approach is essential for ensuring the best use of
all the available resources of the nation.
CLASSIFICATION OF FINANCE

1 On the basis of time
 Short-Term: The "short-term loans" are generally advanced for meeting annual
recurring purchases such as, seed, feed, fertilizers, hired labour expenses, pesticides,
weedicides and hired machinery charges which are termed as seasonal loans/crop
loans/production loans. These are expected to be repaid after the harvest. It is expected
that the loan plus interest would be repaid from the income received through the
enterprise in which it was invested. The time limit to repay such loans is a year.
 Medium-Term (from 15 months up to 5 years):

"Medium-term loans" are advanced for comparatively longer lived assets such as
machinery, diesel engine, wells, irrigation structure, threshers, shelters, crushers,
draught and milch animals, dairy/poultry sheds, etc., where the returns accruing from
increase in farm assets is spread over more than one production period. The usual
repayment period for such type of loan is from fifteen months to five years.
 Long-Term (above 5 Years): Loans repayable over a longer period (i.e. above 5 years)
are classified as long-term loans. "Long-term loans" are related to the long life assets
such as heavy machinery, land and its reclamation, errection of farm buildings,
construction of permanent-drainage or irrigation system, etc. which require large sums
of money for initial investment. The benefits generated through such assets are spread
over the entire life of the asset. The normal repayment period for such loans ranges
from five to fifteen or even upto 20 years.
Purpose of classification
Credit is also classified based on purpose of loans e.g. crop loan, poultry/dairy/piggery loan,
irrigation loan, machinery and equipment loan, forestry loan, fishery loan etc. These loans
signify the close relationship between time and use as well as rate of return or profitability.
Sometimes loans are also classified as production and consumption loans due to the fact that
production loans are diverted for consumption purposes by the weaker sections. So, the banks
have also started financing for consumption purposes (exclusively for home consumption

expenditures) besides financing for the production purposes. The consumption loans are also
to be repaid from the sale proceeds of the crop.
Security classification
Security offered/obtained provides another basis for classifying the loans. The secured loans
are advanced as against the security of some tangible personal property such as land, livestock
and other capital assets, i.e., medium and long term loans. The borrowers .credit worthiness
may act much more than the security offered, which if doubtful may result wilful default.
Moreover, the secured loans are further classified on the basis of type of security e.g.
mortgage loans, where legal mortgage of some property such as land is offered to the lender,
i.e., loans for intangible property such as land improvement, irrigation infrastructures, etc. and
hypothecated loans, where legal ownership of the asset financed remains with the lender
despite physical possession being with the borrowers i.e. loans for tangible property such as
tractor, machinery and equipments. The private money lenders, usually possess items such as
gold ornaments / jewellery or land as security, which reminds the borrower about his
obligations of loan repayments. On the contrary, unsecured loans are generally advanced
without offering any security e.g. short-term crop loans.
Lender classification
Credit is also classified on the basis of lender such as
 Institutional Credit e.g. cooperative loans, commercial bank loans and government
loans;
 Non-Institutional Credit e.g. professional and agricultural money lenders, traders and
commission agents, relatives and friends etc.
Borrower classification
The credit is also classified on the basis of the type of borrowers (i.e., production or business
activity as well as size of business) such as crop farmers, dairy farmers, poultry farmers,

fisherman, rural artisans etc. or agricultural labourers, marginal/small/ medium/large farmers,

hill farmers or tribal farmers etc. Such classification has equity considerations.
SOURCE OF AGRICULTURAL FINANCE

1. Non-institutional Credit Agencies
 Traders and Commission Agents: Traders and commission agents advance loans to
agriculturists for productive purposes against their crop without completing legal
formalities. It often becomes obligatory for farmers to buy inputs and sell outputs
through them. They charge a hefty rate of interest on the loan and a commission on all
the sales and purchases, making it exploitative in nature.
 Landlords: Mostly small farmers and tenants depend on landlords for meeting their
production and day to day financial requirements.
 Money lenders: Despite rapid development happening in rural branches of different

institutional credit agencies, village money lenders still dominate the scene. Money
lenders are of two types, agriculturist money lenders who combine their money
lending jobs with farming and professional money lenders whose sole job is money
lending.
A number of reasons have been attributed for the popularity of money lenders such as:
o They meet demand for productive as well as unproductive requirements
o They are easily approachable even at odd hours; and
o They require very low paper work and advances are given against promissory
notes or land.
Money lenders charge a huge rate of interest as they take advantage of the urgency of the
situation. Over the years a need for regulation of money lending had been felt. But lack of
institutional credit access to certain sections and areas have facilitated unhindered operation of
money lending.
Institutional Credit Agencies

The evolution of institutional credit to agriculture could be broadly classified into four distinct
phases - 1904-1969 (predominance of cooperatives and setting up of RBI), 1969-1975
(Nationalization of commercial banks and setting up of Regional Rural Banks (RRBs)), 1975-
1990 (setting up of NABARD) and from 1991 onwards (financial sector reforms).
Institutional funding of the farm sector is mainly done by commercial banks, regional rural
banks and cooperative banks. Share of commercial banks in total institutional credit to
agriculture is almost 48 per cent followed by cooperative banks with a share of 46 per cent.
Regional Rural Banks account for just about 6 per cent of total credit disbursement.
 Government: The government sector banks extend both short term as well as long-
term loans. These loans are popularly known as "Taccavi loans" which are generally
advanced in times of natural calamities. The rate of interest is low and it is not a major
source of agricultural finance.
India dates back to 1904 when first Cooperative Credit Societies Act was
Co operative Credit Societies: The history of cooperative movement in passed by the
Government. The scope of the Act was restricted to establishment of primary credit societies
and non-credit societies. The shortcomings of the Act were rectified through passing another
Act called Cooperative Societies Act 1912. The Act gave provision for registration of all types
of Cooperative Societies. This made the emergence of rural cooperatives both in the credit and
non-credit areas, though with uneven spatial growth. Soon after the independence, the
Government of India following the recommendations of All India Rural Credit Survey
Committee (1951) felt that cooperatives were the only alternative to promote agricultural
credit and development of rural areas16. Accordingly, cooperatives received substantial help
in the provision of credit from Reserve Bank of India as a part of loan policy and large scale
assistance from Central and State Governments for their development and strengthening.
Many schemes involving subsidies and concessions for the weaker sections were routed
through cooperatives. As a result cooperative institutions registered a remarkable growth in
the post-independent India.
Commercial Banks: Previously commercial banks (CBs) were confined only to urban areas
serving mainly the activities of trade, commerce and industry.
Their role in rural credit was meager i.e., 0.9 per cent in 1951-52 and 0.7 per cent in 1961-62.
The insignificant participation of CBs in rural lending was explained by the risky nature of

agriculture due to its heavy dependence on monsoon, unorganized nature and subsistence
approach. Through nationalisation of CBs in 1969 and CBs were made to play an active role
in agricultural credit was accelerated and they are the largest source of institutional credit to
agriculture.
CO OPERATIVE CREDIT ORGANISATION

Cooperatives play a very important role in disbursement of agricultural credit. Credit is
needed both by the distribution channel as well as by the farmers. The distribution channel
needs it to finance the fertilizers business and farmers need it for meeting various needs for
agricultural production including purchasing fertilizers. The credit needed by the farmers for
purchase of fertilizers and other inputs is called 'short term' credit or 'production credit'
whereas credit needed by the distribution channel is called 'Distribution Credit'.
Cooperatives also play a very important role in disbursement of 'Medium Term' and 'Long
Term' credit needed by the farmers'. In India, 78 per cent of the farmers belong to the category
of small and marginal farmers and they depend heavily on credit for their agricultural
operations. These farmers will not be able to adopt the modern agricultural practices unless
they are supported by a system which ensures adequate and timely availability of credit on
reasonable terms and conditions.
AGRICULTURAL COOPERATIVE SOCIETIES (PACS)

PACS functions on the basis of cooperative principles of voluntary participation, democratic
control, limited area of operation and limited liability. These societies work at the village level
and are meant for the farmers regarding provision of requisite short term and medium term
loans. Supply of agricultural inputs and other essential commodities are also taken up by these
societies. The PACS are associated
with following functions:
 They borrow adequate and timely funds from DCCBs and help the members in
financial matters;

 They attract local savings in the form of share capital and deposits from the villagers,
thereby inculcating the habit of thrift;
 They supervise the end use of credit;
 They make available fertilizers and insecticides to the needy farmers;
 They provide machinery on hire basis to the farmers;
 They associate with the programmes and plans meant for the socio-economic
development of the village;
 They are also involved in the marketing of farm produce on behalf of the farmer-
borrowers;
 They provide storage facilities and marketing finance;
 They supply certain consumer goods like rice, wheat, sugar, kerosene, cloth etc. at fair
prices.
PRIMARY LAND DEVELOPMENT BANKS (PLDBs)

The establishment of the Land Mortgage Bank (LMBs) on cooperative lines dates back to the
year 1920 in Punjab. Later during the period 1920 and 1929 number of LMBs were
established in the states of Punjab, Madras, Mysore, Assam and Bengal. After that not much
growth was observed in the number of LMBs till 1945. However, during 1945-53 a rapid
growth was observed in the number of these banks. During this period only rich and affluent
farmers derived benefits of these banks and small and marginal farmers remained untouched
of the developments. LMBs got massive support from the RBI, SBI, LIC and Agricultural
Refinance Corporation. As a result LMBs had to reorient its lending policies in favour of
marginal and small farmers. LMBs were renamed as Land Development Banks (LDBs) in
1974. Primary LDBs are generally organized to serve the farmers at Taluk level. Its specific
functions are:

 To provide long term finance to the needy farmers for the development of land,
increasing production and productivity of land;
 To provide long term loan for minor irrigation and for redemption of old debts and
purchase of land;
 To provide long term finance for purchase of tractors, machinery and
equipments and construction of farm structures;
 To mobilize rural savings.
Agriculture is always exposed to an uncontrolled environment, unlike other production

activities. The market for agricultural output will be perpetual because everyone needs food to
live. The risks farmer faces are much higher than those for other producers. In the absence of
a suitable and comprehensive public policy, such risks lead either to under production or
mispricing of output. The practice of increasing the minimum support price has to be re-
examined as it results in to large procurement of foodgrains by the public sector agencies and
can distort the price formation mechanism. As agriculture, tiny and small enterprises.
Presently, the broad categories of priority sector for all scheduled commercial banks are as
under:
Categories of Priority Sector

Agriculture (Direct and Indirect finance): Direct finance to agriculture includes short, medium
and long term loans given for agriculture and allied activities (dairy, fishery, piggery, poultry,
bee-keeping, etc.) directly to individual farmers, Self-Help Groups (SHGs) or Joint Liability
Groups (JLGs) of individual farmers without limit and to others (such as corporate,
partnership firms and institutions) for taking up agriculture/allied activities.
SUBSIDIES
Meaning
Subsidies are grants given to a specified public to get a desired action from their side, for
instance, when government feels that the yield per hectare is low which can be increased by
using fertilizers, than government gives fertilizers subsidies so that small farmers can
purchase the fertilizer. This means that subsidy is changing the price exogenously to alter the

demand and supply figures. Most controversial classes of subsidies across the world are fuel
subsidies and agricultural subsidies and today we are discussing agricultural subsidies.
An agricultural subsidy is a governmental subsidy paid to farmers and agribusinesses to
supplement their Income manage the supply of agricultural commodities and influence the
cost and supply of such commodities. Examples of such commodities include wheat, feed
grains (grain used as fodder, such as maize or corn, sorghum, barley, and oats), cotton, milk,
rice, peanuts, sugar, tobacco and oilseeds such as soybeans.
AGRICULTURAL DEBT WAIVER AND DEBT RELIEF SCHEME
The Finance Minister, in his Budget Speech for 2008-2009, announced a Debt Waiver and
Debt Relief Scheme for farmers. Subsequently in the budget for 2010-11, in view of the recent
drought in some States and the severe floods in some other parts of the country, it was
proposed to extend by six months the period for repayment of the loan amount by farmers
from December 31, 2009 to June 30, 2010. The Scheme will cover direct agricultural loans
extended to „marginal and small farmers. and other farmers. by Scheduled Commercial
Banks, Regional Rural Banks, Cooperative Credit Institutions (including Urban Cooperative
Banks) and Local Area Banks (here in after referred to compendiously as “lending
institutions”) as indicated in the Guidelines. The Scheme shall come into force with
immediate effect.
Definitions
Direct Agricultural Loans means Short Term Production Loans and Investment Loans
provided directly to farmers for agricultural purposes. This would also include such loans
provided directly to groups of individual farmers (for example Self Help Groups and Joint
Liability Groups), provided banks maintain disaggregated data of the loan extended to each
farmer belonging to that group.
Short Term Production Loan .means a loan given in connection with the raising of crops
which is to be repaid within 18 months. It includes working capital loan, not exceeding Rs. 1
lakh for traditional and non-traditional plantations and horticulture.
Investment Loan means investment credit for direct agricultural activities extended for
meeting outlays relating to the replacement and maintenance of wasting assets and for capital

investment designed to increase the output from the land, e.g. deepening of wells, sinking of
new wells, installation of pump sets, purchase of tractor / pair of bullocks, land development
and term loan for traditional and non-traditional plantations and horticulture; and investment
credit for allied activities extended for acquiring assets in respect of activities allied to
agriculture e.g. dairy, poultry farming, goatery, sheep rearing, piggery, fisheries, bee-keeping,
green houses and biogas.
Cooperative Credit Institution means a cooperative society that

a) Provides short-term crop loans to farmers and is eligible for interest subvention from
the Central Government; or
b) Carries on banking activities regulated or supervised by RBI or NABARD; or
c) Is part of the Short-Term Cooperative Credit Structure or Long-Term Cooperative
Credit Structure in a State or Union Territory.
Marginal Farmer’ means a farmer cultivating (as owner or tenant or share cropper)
agricultural land up to 1 hectare (2.5 acres).
‘Small Farmer’ means a farmer cultivating (as owner or tenant or share cropper) agricultural
land of more than 1 hectare and up to 2 hectares (5 acres). Large Farmer’ means a farmer
cultivating (as owner or tenant or share cropper) agricultural land of more than 2 hectares
(more than 5 acres).
Eligible amount
The amount eligible for debt waiver or debt relief, as the case may be (hereinafter referred to
as the „eligible amount.), shall comprise of: (a) in the case of a short-term production loan, the
amount of such loan (together with applicable interest):
 Disbursed up to March 31, 2007 and overdue as on December 31, 2007 and remaining
unpaid until February 29, 2008;
 Restructured and rescheduled by banks in 2004 and in 2006 through the special
packages announced by the Central Government, whether overdue or not; and

 Restructured and rescheduled in the normal course up to March 31, 2007 as per
applicable RBI guidelines on account of natural calamities, whether overdue or not.
 In the case of an investment loan, the installments of such loan that are over due
(together with applicable interest on such installments) if the loan was:
 Disbursed up to March 31, 2007 and overdue as on December 31, 2007 and remaining
unpaid until February 29, 2008;
 Restructured and rescheduled by banks in 2004 and in 2006 through the special
packages announced by the Central Government; restructured and rescheduled in the
normal course up to March 31, 2007 as per applicable RBI guidelines on account of
natural calamities.
The following loans shall not be included in the eligible amount:
 Advances against pledge or hypothecation of agricultural produce other than standing

crop; and
 Agricultural finance to corporates, partnership firms, societies other than cooperative

credit institutions (referred to in para 3.4), and any similar institution.
 Nothing contained in this Scheme shall apply to any loan disbursed by a lending
institution prior to March 31, 199734.
Debt Waiver
In the case of a small or marginal farmer, the entire eligible amount shall be waived.
Debt Relief
In the case of other farmers there will be a one time settlement (OTS) Scheme under which
the farmer will be given a rebate of 25 per cent of the eligible amount. Subject to the condition
that the farmer pays the balance of 75 percent of the eligible amount.

Provided that in the case of revenue districts listed in Annex-I, other farmers. Will be given
OTS rebate of 25 percent of the eligible amount or Rs.20000, whichever is higher, subject to
the condition that the farmer pays the balance of the eligible amount.
Implementation
Every branch of a scheduled commercial bank, regional rural bank, cooperative credit
institution, urban cooperative bank and local area bank covered under this Scheme shall
prepare two lists, one consisting of small and marginal farmers. who are eligible for debt
waiver and the second consisting of other farmers who are eligible for debt relief under this
Scheme. The lists shall include particulars of the landholding, the eligible amount and the
amount of debt waiver or debt relief proposed to be granted in each case. The lists shall be
displayed on the notice board of the branch of the bank/society on or before June 30, 2008. A
farmer classified as small farmer. or marginal farmer will be eligible for fresh agricultural
loans upon the eligible amount being waived.
A farmer classified as other farmer eligible for OTS relief shall give an undertaking agreeing
to pay his share (that is eligible amount minus the amount of OTS relief) in not more than
three installments and the first two installments shall be for an amount not less than one-third
of his share. The last dates of payment in the case of three installments will be September 30,
2008; March 31, 2009 and June 30, 2009. The undertaking shall be in such form as may be
prescribed by RBI/NABARD.
The amount of OTS relief (i.e. the Central Governments share) will be credited to the account
of the other farmer. Upon the farmer paying his share in full In the case of a short-term
production loan, the other farmer will be eligible for fresh short-term production loan upon
paying one-third of his share.
In the case of an investment loan (for direct agricultural activities or allied activities), the
other farmer is eligible for fresh investment loan upon paying his share in full.
Reserve Bank of India shall be the Nodal agency for the implementation of the Scheme in
respect of scheduled commercial banks, urban cooperative banks and local area banks.
NABARD shall be the Nodal agency in respect of regional rural banks and cooperative credit
institutions.

Interest and other charges

The lending institutions shall not charge any interest on the eligible amount. for any period
after February 29, 2008. However, in the case of other farmer who defaults in paying his share
of the eligible amount on or before June 30, 2009 and becomes ineligible for OTS relief, the
bank may charge interest for the period after June 30, 2009.
Installments of investment credit which fall overdue after 31.12.2007 shall be recovered by
the lending institutions along with the applicable interest. Lending institutions may, however,
in appropriate cases, reschedule these installments in accordance with the normal policy of the
lending institution concerned.
Notwithstanding anything contained in this Scheme, the amount of interest that a lending
institution may claim as reimbursement from the Central Government under this Scheme shall
not, in any case, exceed the principal amount of the loan.
Ministry of Finance will issue supplemental instructions to the lending institutions in respect
of all incidental and ancillary matters including instructions on interest and other charges that
shall not be claimed by the lending institutions from the farmer or the Central Government.
Certificate of debt waiver or debt relief In the case of small and marginal farmers, upon
waiver of the eligible amount, the lending institution shall issue a certificate to the effect that
the loan has been waived and specifically mention the eligible amount that has been waived.
In the case of „other farmers., upon granting OTS relief, the lending institution shall issue a
certificate to the effect that the loan account has been settled to the satisfaction of the lending
institution and specifically mention the eligible amount, the amount paid by the farmer as his
share and the amount of OTS relief.
The certificate shall be in such form as may be prescribed by RBI/NABARD and upon issuing
the certificate the lending institution shall take an acknowledgement from the farmer.
CROP INSURANCE
Meaning

Crop insurance is undertaken by agricultural producers, including farmers, ranchers, and

others to protect themselves against either the loss of their crops due to natural disasters, such
as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural
commodities.
CROP INSURANCE HISTORY

In our country crop production has been subjected to the vagaries of the climate. Some of the
other problems that the Indian agriculture is constantly tackling with are the large-scale
damages that are caused as a result of the attack of pests and diseases. It is in a scenario in
India the issue of crop insurance assumes a vital role in the stable growth of the agricultural
sector. Tracing the Crop Insurance History in India we see that it was started with the
introduction of the All-Risk Comprehensive Crop Insurance Scheme (CCIS) that covered the
major crops. This scheme was introduced in 1985. In fact this period of introduction also
coincided with the introduction of the Seventh-Five-year plan. This initial scheme was of
course later substituted and replaced by the National Agricultural Insurance Scheme. This
substitution came into effect from 1999. These Schemes that have been introduced throughout
the crop insurance history have been preceded by years of preparation, studies, planning,
experiments and trials on a pilot basis.
In the crop insurance history, the question of introducing a crop insurance scheme was taken
up for examination soon after the Indian independence. The first aspect that was examined
related to the modalities of crop insurance. The issue under consideration was about whether
the crop insurance should be offered under an Individual approach or on Homogenous area
approach.
The Individual approach of the scheme indemnifies the farmer to the full extent of the losses.
Also the premium that is to be paid by him is determined with reference to his own past yield
and loss experience. The Individual approach for these schemes necessitates reliable and
accurate data of crop yields of individual farmers for a sufficiently long period, for fixation of
premium on actuarially sound basis.
The Homogenous area approach on the other hand was aimed at envisaging a homogeneous
area from the point of view of crop production and similarity of annual variability of crop
production. The homogenous area approach was found to be more favorable. This is because
it would facilitate the provision of a single unit treatment to various agro-climatically

homogenous areas and the individual farmers and allow them to pay the same rate of premium
and receive the same benefits, irrespective of their individual fortunes.
CROP INSURANCE RISKS COVERED

The Crop insurance schemes aim at providing comprehensive risk insurance which covers the
yield losses that occur to the agricultural output of small and marginal farmers due to non
preventable risks.
The crop insurance risks covered under the non-preventable category are listed below:
 Natural Fire and Lightning
 Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado
 Flood, Inundation and Landslide
 Drought and Dry spells
Pests and The crops insurance risk does not cover any of the losses that arise out of warrant
clear risks, malicious damage and other risks which are preventable risks. The sum insured
under the crop insurance risks covered usually extends to the value of the threshold yield of
the insured crop. This is usually subject to the option of the insured farmers. Nevertheless, a
farmer may also choose to insure his crop beyond the value of the threshold yield level up to
150 per cent of average yield of the notified area on payment of premium at commercial rates.
Apart from the risks covered in the crop insurance scheme, what is important is the sum
insured. In case of Loan farmers the sum insured would be at least equal to the amount of crop
loan advanced. Further, in the case of the Loan farmers, the insurance charges that will be
levied will be additional to the Scale of Finance for the purpose of obtaining loan. Apart from
the above mentioned issues, the matters of Crop Loan disbursement procedures, which have
been outlined by the RBI or
NABARD are binding. The insurance premium issues still stand at an undecided state as the
transition to the actuarial regime in case of cereals, millets, pulses & oilseeds is expected to be
made in a period of five years.
CROP INSURANCE SCHEMES IN INDIA
In order to provide a boost to the agriculture in India, a number of

experrmental crop insurance schemes have been introduced in the country. The first ones of
the experimental crop insurance schemes has been a Pilot Crop Insurance scheme. This was
introduced by GIC from the year 1979.
Some of the important features of the scheme were based on "Area Approach". This scheme
covered crops such as Cereals, Millets, Oilseeds, Cotton, Potato and Gram. The scheme was
confined to loan farmers only and on voluntary basis. The risk was shared between General
Insurance Corporation of India and State Governments in the ratio of 2:1. The maximum sum
that could be insured under the scheme was 100 per cent of the crop loan, which was later
increased to 150 per cent.
Under this scheme, 50 per cent of the subsidy was provided for insurance charges which was
payable to the small / marginal farmers by the State Government & the Government of India
on 50:50 basis.
Among the earlier crop insurance schemes that were introduced was a comprehensive Crop
Insurance Scheme. The Government of India introduced the Comprehensive Crop Insurance
Scheme with effect from 1st April 1985. This scheme was introduced with the active
participation of State Governments. The Scheme was optional for the State Governments.
This Scheme was linked to the short-term crop credit that was extended to the farmers and
was implemented using the Homogeneous Area approach. The number of states that were
covered under the scheme were 15 States and the number of UTs that were included. This
Scheme was implemented until Kharif 1999. Some of the important features of this scheme
allowed a cover to the farmers availing crop loans from Financial Institutions for growing
food crops & oilseeds on compulsory basis.
The coverage under this scheme was restricted to 100 per cent of crop loan subject to a
maximum of Rs. 10,000/- per farmer. The premium rates for Cereals and Millets were 2 per
cent and for Pulses and Oil seeds 5 per cent. The premium and risk claims were shared in a
ratio of 2:1 by the central and state Government. The Scheme was optional to State
Governments.

AGRICULTURE SCHEMES PROVIDED BY VARIOUS SECTORS OF BANKS
AGRICULTURAL GOLD LOANS

Purpose Bank extends hassle free finance to farmers / agriculturists against Gold Ornaments /
gold wares to increase their liquidity to meet crop production expenses, Investment expenses
related to agriculture and / or allied agricultural activities.
Eligibility
Any person engaged in agriculture or allied activities as well as persons engaged in activities
permitted to be classified under agriculture.
Quantum of Loan
Up to 70 per cent of the value of the ornaments .Value will be as advised by the bank to the
branches periodically.
Security
Pledge of gold ornaments.
How do you repay Credit / Overdraft like KCC it is a running account for a period of 3years
LAND PURCHASE SCHEME
Purpose
To assist Small & Marginal farmers and landless agricultural labourers for purchase of Land,
who are our existing borrowers to consolidate land holdings & development of Wasteland &
fallow lands.
Eligible
o Small & Marginal Farmers owning less than 5 acres of un irrigated or 2.5 acres of
irrigated land in their own names, landless agricultural labour.

o The borrowers should have a record of prompt repayment of the loan for at least two
years.
o Good borrowers of other Banks are also eligible provided they liquidate their out
standings to other banks.
Loan amount
Loan may be considered for:
 Cost of land
 Provision of irrigation facilities & land development (shall not exceed 50 per cent of
the cost of the land).
 Purchase of farm equipments.
 Registration charges & stamp duty.
Loan amount will be 85 per cent of the cost of the land, as assessed by the bank, subject to the
maximum of Rs 5 lakhs
Security
Mortgage of land to be purchased
How to repay the loan
Maximum 9-10 years beginning after the expiry of gestation period, with half yearly
installments. Gestation period will be maximum of 1 year for the developed land and 2 years
for the land to be developed.

How to apply for this loan Contact your Branch You may contact our nearest branch or talk
to the marketing officers visiting your village.
MINOR IRRIGATION SCHEMES

Purpose
Loan covers various activities like digging of new wells (open / bore wells), deepening of
existing wells, energisation of wells (oil engine/electrical pump set), laying of pipelines,
installing drip / sprinkler system and lift irrigation system.
Eligible
All farmers having a known source of water available for irrigation purpose are eligible for
the loan.
Loan amount
.For loans up to Rs 50000 - 100 per cent of the project cost
.For loans above Rs 50000 – up to 85 per cent of the project cost will be provided as loan cost
Documents
 Land records
 Quotation for the assets to be purchased
 An estimate for the civil works to be undertaken
 Geologist certificate wherever applicable
 Feasibility certificate from the EB Dept

Security
A) Where movable assets are not created
(a) Up to Rs 10000/ Personal guarantee
(b) Above Rs 10000/ Personal guarantee and Mortgage of land
B) Where movable assets are created
(a) Up to Rs 50000/ Hypothecation of assets created
(b) Above Rs 50000 Hypothecation of assets and mortgage of land
Repayment of loan
Repayment will be in Quarterly or half yearly or yearly installments. over a period of 5 to 7
years depending on the crops or the liquidity created by the agriculture activity undertaken.
How to apply for this loan You may contact our nearest branch or even talk to the marketing
officers visiting your village.
FARM MECHANISATION SCHEME

Purpose
Loan is sanctioned for Purchase of new tractors and matching implements or equipments,
purchase of new power tillers, purchase of second hand tractors with matching implements,
purchase of agricultural machinery, and repair/renovation of tractors.
Eligibility
For tractors Farmer or a group of farmers holding land jointly should have a land holding
either owned by them or held by them on perpetual leasehold rights of minimum 2.5 acres of
perennially irrigated land or corresponding acreage. Economic viability of financing tractor in
each case shall be worked out. Thus, financing of tractor shall be done after ensuring

economic viability of the tractor loan proposal. For Power tillers: Farmer or a group of
farmers holding land jointly should have a land holding either owned by them or held by them
on perpetual lease hold rights of minimum 1.5 acres of perennially irrigated land or
corresponding acreage. Financing of power tiller shall be done after ensuring economic
viability of the power tiller proposal. For other farm machinery/equipments: No condition of
minimum land holding has been stipulated. Farmer should have proper scope for utilization of
assets and based on economics should be in a position to conveniently repay loan.
Extent of Loan and Need based loan.
Insurance
The tractor borrowers who have opted for PNB farmers. Welfare Fund Scheme are required to
get their tractor and matching implements insured against” Liability” (third party) under the
Insurance Act to get insurance coverage.
Subscription will be recovered from the accounts of borrowers who give their consent to opt
for PNB Farmers Welfare Fund Scheme. The structure of fee is as under:-
Rs.800/- : for 12 months of calendar year.
.Rs.400/- : for less than 6 months in a calendar year.
3.30.5. Repayment of Loan: Repayment of loan is to be made in half yearly/yearly

installments as under: -
 Tractors 7-9
 Second hand tractors 5
 Power tillers 7
 Other farm machinery:
a) Small & marginal farmers 5
b) Other farmers 7 (including repayment holiday of one year)
Repair/renovation of tractors 5

Note: Repayment period shall be fixed on a case by case basis depending on nature of repairs,
category of farmer and his repayment capacity, etc.
GOVERNMENT SPONSORED SCHEMES

Bank is the front-runner in implementing various Government Sponsored Schemes aimed to
uplift poor, educated unemployed or underemployed people in rural or semi-urban or urban
areas by providing financial assistance to set up self-employment ventures with the help of
various government authorities or agency
CHAPTER-2
REVIEW OF LITERATURE
REVIEW OF LITERATURE
To understand the measures taken for managing the agricultural loan in the bank this
study was conducted . It was first important to understand the problem addressed in
the study. Hence with an intention to gather all important bits of information through
secondary data, the literature review was carried out as its very essential entity in
banks, which needs to be carefully assessed.
The report , projects and books referred to also gave a lot of insight into the
study.
The purpose of this dissertation was to find out the causes and measures taken by
the company to manage the agricultural loans.
CHAPTER-3
RESEARCH DESING
TITLE OF THE STUDY

A STUDY ON ROLE OF BANK IN AGRICULTURAL FINANCING WITH SPECIAL

REFERENCE TO PLD BANK KOLAR.
STATEMENT OF THE PROBLEM
Financing agriculture sector in PLD bank is the main intention of pursing information
and analyzing statistical data of loan lending’s in PLD bank related to when the bank
provide loan, how much they provide and why they provide and farmers opinion about
PLD services.
OBJECTIVES OF THE STUDY
1. To collect the data regarding the type of loan provided by PLD bank to the
agriculture sector.
2. To gain the theoretical and practical exposure from selected domain.
3. To study on role of PLD bank to the agricultural development .
4. To collect the data regarding purpose of loan lending and any subsidies they are
given to farmers.
5. To collect the opinions and expectation from the customers regarding co-
operative bank assistance.
6. To know the role of government in agriculture landing .
7. To study the financial performance of PLD bank .
8. To understand the loan portfolio of the bank .
9. To understand the perception of the farmers about the agriculture loan .
10. To recognize the treatment of NPA .
SCOPE OF THE STUDY

This study covers the all the aspects regarding financial efficiency. The study conducted in
PLD bank and I will concentrate only on the development of particular district. It is a
regional bank, hence the study on financing agriculture sector , it covers.
1. Short term agricultural loan,
2. Medium term agricultural loan
3. Long term agricultural loan
OPERATIONAL DEFINITION OF THE CONCEPTS
 BANKER
Middllemen between savers and acts for some consideration. It includes lending of
loans and advances business too.
 CUSTOMER
Beneficiaries who availed bank loans at PLD bank , Kolar town are customer foe
the purpose of this project report.
 LOANS
It is a document in writing and acknowledgement of debt, in which banker pays

lump sum amount to customer in return has to repay the same along with at
different interest rate time to time.
SAMPLING
Collection of data is made from bank and personnel interview.
METHODOLOGY

The research methodology means a set of techniques and tools for a collection of
the data.
The word methodology has “the compel frame work for with in which the data is
collected is called a methodology.”
The researcher has adopted analytical, descriptive and empirical study for this
report reliance has been placed on books , journals, newspaper, and online databases
and on the writers in the discipline of competition law.
METHODOLOGY ADOPTED IN THIS RESEARCH
 Descriptive research
 Analytical research
 Descriptive research
The descriptive research means the survey of fact findings through from
respondents and collects the facts and information. The data will be
control in the hands of respondents only not in the hands of researcher
is called descriptive.
 Analytical research
The data is already in the hands of researcher at the time researcher

analysis the past information with the present data is called analytical
research.
SOURCES OF DATA COLLECTION
 Primary data
 Secondary data
The primary data refers to the data that is collected a fresh and recorded for the first
time.
 Interviews

 Observations
Secondary data is already existing data it’s already collected someone is called
secondary data.
This will be collecting through from,
 Books
 Internet
 Company annual report
 Magazines andnews papers.
PLAN OF ANALYSIS
 Pie charts
 Trend lines
 Bar charts
 His to graphs
REFERENCE PERIOD
The reference period of this study was 3months only
LIMITATIONS OF THE STUDY
1] Lack of information due to work pressure in bank .
2] Lack of appropriate data regarding survey due to financial year end.
3] Lack of sufficient statistical data regarding agriculture.
4] Many bank they won’t provide financial statement to externals.
5] Insufficient and improper information from formers.
CHAPTER SCHEME
Chapter :1
Introduction
In this chapter , we look in to the general back ground of the study . Introduction to
finance and introduction to financing agriculture sector is included in this chapter.
Chapter:2
Chapter:3
Research design
In this , the methodology followed for the study , the scope, need and importance ,
objectives , sources and methods of data collection used, tools and analysis of data used
and limitations of the study of this project is included.
Chapter:4
Company profile
In this chapter , details about the PLD bank, it’s origin ,history, mission, and vision various
financial services, it future plans is included.
Chapter:5
Data analysis and interpretationIt includes , analyzing the collected data by using charts
and interpretation the analyzed data those are includes,
Chapter :6
Findings: Meaning what has been found through this project.
Suggestion: It includes for the company to improve if any
Conclusions: The overall summary about the project.
Bibliography

Annexure
CHAPTER -4
COMPANY PROFILE
HISTORY OF THE PLD BANK IN INDIA
For the co-operative banks in India, co-operatives are organized groups of people and jointly
managed and democratically controlled enterprises.
They exist to serve their numbers and depositors and produce better benefits and services for
them. Professionalism in cooperative banks reflects the co-existence of high level of skills
and standards in performing duties net trusted to an individual co-operative bank needs
current and future development in information technology, it is INDEED necessary for co-
operative banks to devote adequate attention for maximizing their returns on every unit of
resources through effective services, co-operative banks have completed 100 years of
existence in india ,they play a very important role in financial system. The co-operative banks
in india form on integral part of money market.
TYPES OF CO-OPERATIVE BANKS
 Primary co-operative credit society

 Central co-operative banks
 State co-operative banks
 Land development banks
 Urban co-operative banks
INSPECTION
The banks was established on 27/1/1935. Basically it was started as service co-operative
society for few villages only and later on it was converted as V.S.S.N which included 8-10

villages then it got expanded as sericulture cum farmer co-operative society by which it
started lending to both seri culturists and farmers. In later days according to Karnataka…
Finally all this funds will be reaching to the farmers with the help of primary agricultural co-
operative society through P.L.D BANK.
BRANCHES:
Primary co-operative and agricultural and rural development bank ltd, has 12 branches, they
are:
 Bangarpet
 Bagepalli
 Chikkabappapur
 Chintamani
 Gowribidanur
 Gudibande
 K.g.f
 Kolar
 Mulbagal
 Malur
 Srinivaspur
 Sidlagatta
TYPE OF INDUSTRY:
P.L.D bank is a service oriented institution which mainly focuses on extending economic
strength to farmers, who are considered as bank bone of national.
NATURE OF INDUSTRY
Nature of P.L.D bank is secondary institution as it will depend mostly on the man power in
order carry out different activities in the banking process.

MISSION STATEMENT:
As it is a bank it is known to all that the main mission of it will e obviously accepting the
deposits and lending to it’s customers, as and when the depositors demand for their money
giving back to them.
VISSION:
The current vision of the bank is to increase the deposits, issue the crop loans, providing cash
credit loans, increasing the present share investment, provide medium term loans, and the
most important may be collecting back the loan amounts given to the customers.
GOALS AND OBJECTIVES:
The P.L.D bank number of objectives, some of them are:
 Undertaking common banking activity.

 Lending money and their by extending economic support to farmers.
 Giving loans to depositors by keeping their deposits as security.
 Bank will provide safe deposit value and lockers to both its members and other of rent.
 Establishing branches of the bank, extention counter and other offices and offices and
undertaking all banking activities with the permission of regulators of the bank.
 Encouraging and taking steps to provide loans to the self help groups which are the
limits of bank.
 Creating funds in order to facilitate or help their staff members and their dependents.
 To undertake and execute rent.
 Undertaking international exchange business with the permission of Indian reserve
bank.
 Training facilitates o its employees, member co-operative providing society about
banking and managing activities.
 To buy fixed assets for the own use of the bank with the
 permission of the department when ever needed.
SPECIAL PROVISION TAKEN BY THE PLD BANK FOR IMPROVING THE

AGRICULTURE AND OTHER SECTOR.

1.an temporary employees working in the organization more than 10 years that time
government will take considering and giving appointment orders and holding permanent basis
of education and experience.
2.giving special assistance to non agricultural operations without interest and borrower should
pay the loan principal amount lump sum in at a time.
3.for the security and future reference purpose conversion of books of accounts into
computerization.
4. an employee contributing his service more than 10 years in a particular bank at the time he
has to get all the social security benefits.
5. increasing the special scheme relating to increasing the employee salaries for protecting
their interests.
6.granting funds for providing pension to the retired employees as soon as possible.
7. increasing the bank capital reserve ratio more than compare to last year for the purpose of
avoiding bankruptcy.
8. special importance given to the tribal area peoples and below poverty line groups for
strengthening their lives.
9. an borrower repaying their loan before the due date at the time he has to get other types of
loans from bank with confidence.
10. special provision for trade and commerce development.
WORK FORCE STRENGTH:
All the activities of primary co-operative and agricultural and rural development bank ltd. Are
carried out by totally 13 members, who include 1 manager, 1 first divisional assistant, 1
second divisional assistants, 1 drivers and 1 attainders 1typists 1 system operator to execute
various activities. Man power is considered to be important power in the bank because each
and every activity in the bank has to be carried out by men itself and without their efforts none
of the operations can be done.
WORK FORCE CHART
MANAGER
FIRST DEVISIONAL
ASSISTANCE
SECOND DEVISIONAL ASSISTENCE
SUB STAFF
SERVICE REPORT:
A. AGRICULTURAL LOANS:
Under this, bank will provide loans for agricultural purposes, such as long term, medium
terms and short term loans under different schemes. All these loans are given to the farmers
only after making a study on various like the area of land that the farmer has, the ability of the
farmer to repay the loan etc…..
MEDIUM TERM LOAN FOR EXAMPLE:
 COWS
 GRAPES
SOURCES OF FUNDS:
 Shares , entrance fee, share price.

 Deposits.
 PCARDB bank is obtaining funds from government of Karnataka, government of
India according to the low of India.

 Gifts, provident and donations.

 Interest on the deposits.
 Commission
 Yearly subscription.
ORGANISATIONAL STRUCTURE:
Special officer
Managing director
General Manager
Manager
Senior assistant
Junior assistant
B.NON-AGRICULTURAL LOANS:
These loans include different forms of schems, they are:
 Loans on gold ornaments:

These loans are provided through all branches. This is a package of program that they
have undertaken to provide loans to needy people at comparatively at very low
percentage.
 Loans for self helping groups:
In the year 2009-10 bank is providing loans to these groups to establish 100 groups
newly and among already existing groups 60 groups are considered to be worth to
give loans.
The bank is rendered its services by registering member farmers of the society under this
scheme in order to make them obtain the complete service provided by the government of
Karnataka.
Through the bank was initially concentrating on formers it is broadened its services by
considering sericulture, dairy farmers, merchants, small scale industries and women to
provide economic strength to them.
SHORTTERM LOAN FOR EXAMPLE:
 SEEDS
 WHEAT SEEDS
 PADDY CROP
 CROPCUTTING MACHINE
 MULBARRY
MEDIUM TERM LOAN FOR EXAMPLE:

 COWS
 GRAPES
SOURCES OF FUNDS:

 Shares, entrance fee, share price.

 Deposits.
 PCARBD bank is obtaining
 Funds from government of Karnataka, government of india according to the low of
india.
 Gifts, provident and donations.
 Commission.
 Yearly of subscription.
ORGANISATIONAL STRUCTURE:
Special officer
Managing director
General manager
Manager
Senior assistant
Junior assistant
COMPETATORS:
o Pragathigramina bank
o State bank of india
o DCC bank
KEY PERSONS:

CEO
BOD
MD
BRANCH MANAGER
CREDIT PROVIDED TO AGRICULTURAL ACTIVITIES
Steps taken for granting agricultural loans are as below.
Distric Manager
Recovery Technical Legal officer Divisional

officer officer
Accountant
Superrinted
FDA

SDA
Primary Bank
Farmers
The main activity of the bank is dispensation of long term credit, for agricultural and
rural development .The bank is advancing loans under ‘Normal program’ and ‘special
development program’.
The normal program covers items like leveling, bunding, fencing, and construction of
cattle shed, farmhouse, and redemption of old debts, acquiring ownership of land by
tenants under land reforms
Special development program cover productive purposes like minor irrigation,

horticultures, plantation craps, farm forestry waste land development, dairy development,
piggery gobar -gas plants prawn culture ,poultry, sericulture, bullock and bullock carts,
farm mechanization, integrated loans for agriculture and non-agricultrure and for the
development of lands under major and medium irrigation projects.
SHORT TERM LOANS FOR BELOW MENTIONED IMAGES PURPOSE
WHEAT

SEEDS
PADDY CROP

CROPCUTTING
MEDIUM TERM FOR BELLOW SHOWN IMAGE PURPOSE
GRAPES

COWS
CHAPTER-5
DATA ANALYSIS AND INTERPRETATION
MEANING OF ANALYSIS
It is a process of establishing the meaningfull relationship between the items of two

financial statements with the objective of identified the financial and operational strength
and weakness. This process includes both data analysis and interpretation.
The term “Analysis” means methodology classifying data given in the statements into a
simplified form. The interpretation involves the explanation of the facts in a simplified
manner. It involves the comparison of similar figures at different points of time and
different figures at same point of time.
MEANING OF THE INTERPRETATION
It refers to the comparison of various components and definite conclusion may be drawn
about the earning capacity profitability, liquidity of solvency trend etc. comparison is
very much essential for interpretation.
Analysis and interpretation of a financial statement refers to such a treatment of the

data found in the financialsoundness of the business .It brings out the mystery behind
the figures in financial statements
TABLE -4.1
TABLE SHOWING PLD BANK SHARE CAPITAL[Rs in lakhs]
100% Particulars 31-3-2015 31-3-2016 31-3-2017

State govt. contribution 1 135.28 1 135.28 1 135.28
2 Co-operative unions 766 680.90 766 718.00 870 912.25
TOTAL 767 816.18 767 853.28 871 1047.53
From the above table we can observe the state government &co-operative unions
contribution to the PLD bank share capital as follows
Analysis
2014-15=816.18[lakhs in Rs]
2015-16=853.28[lakhs in Rs]
2016-17=1047.53[lakhs in Rs]
GRAPH -4.1

GRAPH SHOWING SHARE CAPITAL [Rs in lakhs]
SHARE CAPITAL Series2 Series3
1047.53
853.280000000001
816.180000000001
31-03-2015 31-03-2016 31-03-2017
Interpretation
From the above graph we can observe the changes in share capital amount according to
annual basis in the year 2015 the PLD bank share capital 816.18[Rs in lakhs],in the year 2016
increases the share capital from last year 853,28[Rs in lakhs], in the 2017 it’s share capital
had changes from last two years 1047.53[Rs in lakhs].
TABLE-4.2
TABLE SHOWING COMPARATIVE OF STATE GOVERNMENT &CO-OPERATIVE

UNIONS

Sl.no particulars 31-03-2015 31-03-2016 31-03-2017 Total
1 State government 1share 1 1share 135.28 1share 135.28 405.84
2 Co-operative 766share 766share 718 870share 912.25 2311.15

union
ANALYSIS
The above table shows the state government &co-operative unions contribution to the PLD
bank in 3 years & collecting the statistical data on annual basis.
State government contribution [3 years capital]=405.84
Co-operative unions[3 years capital]=2311.15
GRAPH -4.2
GRAPH SHOWING STATE GOVERNMENT & CO-OPERATIVE UNIONS SHARE

CAPITAL COMPARISION

SHARE CAPITAL
STATE GOVT CO-OPERATIVE UNION
15%
85%
INTERPRETATION
The co-operative bank share capital contributors are state government &co-operative unions,
above the diagram represents the difference between the share capital contributions. In the
year 2015,2016.2017 the state government contributions 405.84 lakh rupee &co-operative
union contributes 2311.15 lakh rupees. The co-operative unions, contribution is higher than
the state government contribution . The difference can be predicted on the basis of 3
financial years, statistical data.
TABLE-4.3
TABLE SHOWING PLD BANK AGRICULTURE LOANSDISTRIBUTIONS
Sl.no Particulars 2014-15 2015-16 2016-17
1 Short term loans 51.97 623.41 2697.71

2 Medium term loans - - 610.35
3 Long term loans 64.35 432.47 1436.47
4 total 142.73 1055.88 4140.53
ANALYSIS
The three years statistical data the above table represents the agriculture loan distribution by
co-operative bank to their customers it includes short-term, medium –term &long term loan.
The short –term loans providing for the purpose of purchasing the seeds, pesticides& some
other minor instruments of agriculture operations. This table contain3.
GRAPH-4.3
GRAPH SHOWING SHORT-TERM &MEDIUM YERM LOANAMOUNTS

COMPARISION

comparision
Series1 Series2 Series3
2697.71
1436.47
623.41 610.349999999998
432.47
51.97 0 64.35
Short-term loan mediumterm loan long term loan
INTERPRETATION
The above represent diagram shows the medium term loans contribution by PLD bank to the
farmers. In the year 2014-15 PLD provides51.97[lakhs inRs],in the 2015-16increase the
agricultural loans contribution from 51.97to623.41[lakhs in Rs] in the year 2016-17
drastically changes from the last year contribution 2697.71[lakhs in Rs].
TABLE-4.4
TABLE SHOWING NON REDUMPTION LOANS FROM THE CUSTOMERS

SL.NO PARTICULARS 2015 2016 2017
1 LONG TERM LOANS 7031.32 774.25 5288.29
2 MEDIUM TERM LOANS 1354.74 774.25 604.98
ANALYSIS
The irrecoverable loans of customers to the PLD in three years data. The statistical data
represents the redemption of loans from customers.
GRAPH-4.4
GRAPH SHOWING NON-RECOVERABLE LOANS FROM CUSTOMERS

long term mediumterm Series3
1354.74
604.98
7031.32
5288.29
774.25
774.25
2015 2016 2017
INTERPRETATION
The customer loans are taken from the PLD and irrecoverable of their loans taken. The long
term loans [KCC] are drastically decreases from the one year to another the loans are little bit
recovered by borrowers to the bank in the year 2015 the loans are due from the customers
7031.32[Rs in lakhs],in the year 2016 its decreases to 5288.29[Rs in lakhs].
The medium term loans due from the customers also spontaneously decreased from 2016 to
2017 amounted to 604.98[Rsin lakhs].
TABLE-4.5
TABLE SHOWING AGRICULTURAL LOANS COLLECTION FROM THE FARMER

IN THE YEAR 2015[RD IN LAKHS]
AMOUNT
Sl.no Years Particulars

1 30-6-2015 SHORT-TERM LOANS 739.89
2 30-6-2015 MEDIUM TERM LOANS 269.95
3 30-6-2015 LONG TERM LOANS 67.86
TOTAL 1077.70
ANALYSIS
Above the represented table shows the short term , medium term and long term loans
colleceted from the borrowers.
In the year 2015 the short term and medium term loans are collected the amounted
Rs739.89[shortterm,Rs.260.95[medium term],and long term loans amounted Rs.67.86.
GRAPH 4.5
GRAPH SHOWING THE RECOVERY OF AGRICUITURAL LOANS IN THE YEAR 2015

Series1 AMOUNT Series3
739.89
269.95
67.86
SHORT TERM MEDIUM TERM LONG TERM
INTERPRETATION
The above mentioned statistical data represents the collection of short term loans, medium
term loans and long term loans. In the year 2015 the short term loans are collected large in
size compare to the medium term loans and medium term agriculture loan drastically changes
from the long term loans totally the short term loans amounted to 738.89[Rs in lakhs]
collected from the customers.
TABLE-4.6
TABLE SHOWING THE RECOVERY OF AGRICULTURAL LOANS IN THE YEAR

2016[Rs in lakhs]

Sl.no Year Particulars AMOUNT
1 30-06-2016 SHORT TERM LOANS 3675.89
2 30-06-2016 MEDIUM TERM LOANS 707.80
3 30-06-2016 LONG TERM LOANS 200.00
TOTAL 4583.76
ANALYSIS
The table shows the 2016 year loans collection from the customers, the loans related to short
term and medium term loan.
The total loan amount collection is to 4583.76 [Rs in lakhs].
GRAPH-4.6
GRAPH SHOWING AGRICULTURAL LOANS RECOVERYFROM THE FARMERS IN

THE YEAR 2016

RECOVERY
3675.89
707.8
200.07
0
INTERPRETATION
The above diagram represents the agricultural loan collection from the customers in the year
2016 .The short term loans are collected In large size compare to the other loans, the short
term loans [agriculture]amounted to 3675.89[Rs in lakhs] the medium term loans amounted
to 707.80[Rs in lakhs].This year loans collection are large in size compare to the 2015.
TABLE-4.7
TABLE SHOWING AGRICULTURAL LOANS RECOVERY FROM THE FERMERS IN

THE YEAR2017

Sl.no years PARTICULARS AMOUNT
1 2015 SHORT TER LOANS 1508.66
2 2016 MEDIUM TERM LOANS 124.74
3 2017 LONG TERM LOANS 592.13
TOTAL 2225.53
ANALYSIS
The above table represents the statistical information medium term and short term loans,
the total agricultural loans collections in this year amounte.2225.53 .This year statistical
data totally difference from last two years information.
GRAPH-4.7
GRAPH SHOWING STASTICAL DATA RELATING TO LOANS COLLECTION IN

THE YEAR 2017

Series1 Amount Series3
1508.66
592.13
124.74
Short term
medium term
long term
INTERPRETATION
The short term loans relating to small agricultural operations, for the purpose of
purchasing seeds and pesticides . Relating to this bank was lend the loans , and
customers are repaid the loans amounted to 1508.66 [Rs in lakhs].The medium term loans
for purchasing cows and some other purpose. The total medium term loan amount
collected to 124.74 [Rs in lakhs].in the 2017.
TABLE-4.8
TABLE SHOWING COMPARISION BETWEEN THREE YEAR AGRICULTURAL

LOANS RECOVERY [Rs in lakhs]

SL.NO YEARS PARTICULARS AMOUNT
1 2015 Agri. loans recovery 1009.84
ANALYSIS
The above table represents the 3 years loansrecovery amount, the amounts are
continuously increase from one year to another related to the lending and collecting the
data related to the 2015,2016,2017 and its amounted to Rs 1009.84, Rs. 4383.69 and
Rs.1633.4 respectively.
GRAPH -4.8
GRAPH SHOWING AGRICULTURAL LOANS RECOVERY
INTERPRETATION

LOAN RECOVERY
4383.69
0
1633.4
0
1009.84
0
0
2015 2016 2017
The above represented diagram represents three years loans amount recovery from the
customers. Comparision of three years loans repayment from the farmers , in the year 2016
large amount of repayment from the borrowers and the optimum collection, compare to
2015 and 2017.
TABLE-4.9
TABLE SHOWING INTEREST RATES OF AGRICULTURAL LOANS [2016-2017]
SL.NO YEAR PARTICULARS RATE OF INTEREST

1 2016-2017 SHORT TERM 1%
2 2016-2017 MEDIUM TERM 4%
3 2016-2017 LONG TERM 14%
TOTAL 19%
ANALYSIS
The above table represents the interest rates of the short term and medium term loans in the
year 2016-17 the short term interest rates 1% and medium term loans interest rates4% and
long term loans interest rates 14%.
GRAPH -4.9
GRAPH SHOWING AGRICULTURAL LOANS INTEREST RATE
2016-17

rate of interest
5%
21%
74%
INTERPRETATION
The above represented pie diagram represent the short term [agriculture loans]& medium
term [agricultural loans] interest rates % in the year 2016-17. The short term loan duration
period for repayment is 1 year & interest rate is 1% . The medium term loan duration for
repayment is 1-4 years interest rate is 4% .T he long term loan duration period for repayment
is 1-5 years interest rate is 14% .
TABLE -4.10
TABLE SHOWING THE AGRICULTURAL DEVELOPMENT ACTION PLAN IN THE

YEAR 2015-2016 2016-2017 RELATED TO AGRICULTURAL LOANS
DEVELOPMENT [RS IN LAKHS]

SL.NO YEAR PARTICULAR AMOUNT
1 2015 Crop loan [KCC] 2000.00
2 2016 Crop loan [KCC] 2500.00
3 2017 Crop loan [KCC] 4500.00
ANALYSIS
The above table represents the 2015,2016 &2017 agricultural loans developmental action
plans, for the purpose of strengthening the farmers and promotes the agricultural
operations. The plans are executed on the particular estimate.
GRAPH-4.10
GRAPH SHOWING THE CROP PLAN DEVELOPMENTAL POLICY IN THE YEAR

2016-2017

CROP LOAN
AMOUNT Series2 Series3
4500
2500
2000
2015 2016 2017
INTERPRETATION
The above represented diagram shows the two years crop loans developmental policies
mainly this crop loan related to the short term agricultural purposes. In the year 2016 the
PLD bank provides 2500 [lakhs in Rs] to the farmers, and in the year 2017 it provides
4500[lakhs inRs] comparing these two years contribution spontaneously changes from the
year 2016.
TABLE-4.11
TABLE SHOWING 2016-&2017 MEDIUM TERM LOAN POLICY OF THE PLD BANK
[RS IN LAKHS]

Sl.no Year Particulars Amount
1 2015 Medium term 200.00
ANALYSIS
In the year 2026 & 2017 PLD bank provides medium term loan to the farmers for cow
purchases and major agricultural operations.
GRAPH -4.11
GRAPH SHOWING COMPARISION BETWEEN 2015, 2016 & 2017 MEDIUM TERM
LOAN POLICIES OF THE AGEICULTURAL [RS IN LAKHS]

LOAN POLICIES
AMOUNT Series2 Series3
300
200 200
2015 2016 2017

INTERPRETATION
The above represented dia gram the two years medium term loans for cow purchases . In
the year 2015 the bank provides 200[lakhs in Rs]..., in the year 2016 bank provides 300[lakhs
in Rs] , but in the year 2017 bank provides 200[lakhs in Rs] only for cows purchases for the
purpose of lack of repayment from the customers.
TABLE-4.12
COMPARISION BETWEEN 2015,2016& 2017 TOTAL AGRICULTURAL ESTIMATION

FUND FOR PROVIDING LOANS
[Rs in lakhs]
Sl.no Year Particulars Amount
1 2015 Agricultural loans 1600

ANALYSIS
The 2015. 2016 & 2017 agricultural loans proposal describes the differentiate loans in these
two years. In the year 2015 PLD provides agricultural loan to the farmers amounted to
1600[lakhs in Rs],2016 PLD provides total agricultural loan to the farmers, the amounted to
2800 [lakhs in Rs ] and in the year 2017 it’s amounted to 4700 [lakhs in Rs].
GRAPH-4.12
GRAPH SHOWING COMPARISION BETWEEN 2015, 2016&2017 PLD BANK

CONTRIBUTION TO THE AGRICULTURE [Rs in lakhs].

Amount
2015 2016 2017
18%
52%
31%
INTERPRETATION
This diagram represents the agricultural loans contribution of PLD bank gives more
importance to the agriculture in the year 2017 compare to the 2016 year agricultural loan.
In the year 2015 PLD bank provides agricultural loan 1600[lakhs in Rs],in the year 2016 it
provides agricultural loan 2800 [lakhs in Rs] and in the year 2017 it provides agricultural
loan 4700 [lakhs in Rs].
TABLE -4.13
TABLE SHOWING THE TOTAL REVENUE DERIVED FROM AGRICULTURAL

LOANS INTEREST TO THE PLD BANK IN THE YEAR 2015, 2016 & 2017 [RS IN
LAKHS].

SL.NO YEAR PARTICULATRS Amount
1 2015 Revenue 90.56
2 2016 Revenue 139.29
3 2017 Revenue 105.75
ANALYSIS
The above table represents the PLD bank revenue derived from the agricultural loan
interest. In the year 2015 PLD derives 90.56[Rs in lakhs] and in the year 2016 PLD derives
139.29[lakhs in Rs] and in the year 2017 PLD derives 105.75[Rs in lakhs] income from the
agricultural loan interest.
GRAPH -4.13
GRAPH SHOWING THE COMPARITIVE REVENUE OF PLD BANK FROM

AGRICULTURAL LOANS INTEREST
[2015,2016& 2017]

AMOUNT
2015 2016 2017
27%
32%
42%
INTERPRETATION
Above the presented diagram shows the 2015 , 2016 & 2017 agricultural revenue of the
PLD bank. In the 2015 PLD bank earns 90.56[Rs in lakhs] revenue and in the year 2016
PLD bank earns the revenue from agricultural loans amounted to 139.29[lakhs in Rs] but
in the year 2017 PLD bank earns the revenue from agricultural loans amounted to
Rs.105.75. TABLE-4.14
TABLE-4.14
TABLE SHOWING LOANS TO CROP LOAN

YEAR TARGET ACHIVEMENT
2014-15 0 192
2015-16 0 456.54
2016-17 0 1699.68
ANALYSIS
The loan amount is increasing from 2014-15,2015-16.& 2016-17 crop loan is used
for preparation , producing the crops . Farmers now-a-days using this crop loans for
pre-croping activities and producing crops as it increase the loans under the crop
loan .Crop loans are short term loans sanction from the bank.
GRAPH-4.14
GRAPH REPRESENTING LOANS TO CROP LOAN

CROP LOAN
Target Achivement Series3
1699.68
456.54
192
0 0 0
2014-15 2015-16 2016-17
INTERPRETATION
Table can be analysed that the loans to crop loan in the 2014-15,,2015-16,,2016-17
there is nothing is targeted but loan was sanctioned. Achivements are increasing
every year . The above table and chart depicts the loans granted under the head
crop loan for the years.
TABLE-4.15
TABLE SHOWING LOANS TO AGRICULTUREE SECTOR
2014-15
YEAR
Minor irrigation including land 40.20

development

Horticulture 26.00
Sericulture 9.07
Farm mechanization 77.02
Crop loan 17.00
Diversfied 38.22
ANALYSIS
THE above table and chart depicts the loans to fram mechanization covering
nearly 40% of loans sanctioned due to increasing utilization of machanies in
agriculture sector followed by minor irrigation, diversified , horticulture, crop loan ,
sericulture.
GRAPH -4.15
GRAPH REPRESENTING LOANS TO AGRICULTURE SECTOR

2014-15
Minor irrigation land horticulture sericulture farm mechanization
26%
51%
17%
6%
INTERPRETATION
Table can be analyzed that the loans to agriculture sector in the year 2014-15 for
minor irrigation [land development] 40.20 crores that is 19.37% , horticulture 26
crores that is 53%, sericulture 9.07 crores that is 4.37%, farm mechanization 77.02
crores that is 37.12%.
CHAPTER-5
SUMMARY OF FINDINGS , SUGGESTIONS AND CONCLUSION
FINDINGS

1. PRIMARY CO-OPERATIVE AND AGRICULTURAL AND RURAL

DEVELOPMENT BANK [PCARDB] OR PLD is one and only the bank, to meet
the rural peoples, if farmers demand in the angle of loan , interest and benefits.
2. Mainly PCARDB bank provides short term , medium term and long term assistance
to the agriculture.
3. Major portion of loans are taken by big lands and the small and poor peoples are
not able to get the loans.
DEVELOPMENT BANK [PCARDB] OR PLD act like a non profit organization, it
charges a cheaper rate of interest on their landings.
5. Irregularity of medium term loan redemption from the customer compare to short
term loan.
6. The financial assistance to agriculture strengthens the rural people lives.
7. Short term loan duration 1 year and medium term duration is up to 4 years and long
term 5 years maturity but at the time of lending loan they are not meet the
farmers demand in required time.
DEVELOPMENT BANK [PCARDB OR PLD] mainly provides [KCC] short term
loan to the farmers and average of medium term loan for the sake of maintain
bank solvency position.
9. In the year 2015 extraordinary loans collection from the customers
10.I N the year 2016-17 they are adopted agriculture developmental action plans.
SUGGESTIONS
1. The PRIMARY CO-OPERATIVE AND AGRICULTURAL AND RURAL

DEVELOPMENT BANK [PCARDB OR PLD] should take corrective action
for loans disposal in appropriate manner.
2. They should give more importance for small farmers then only it’s useful
and balanced regional development of the country. [They should avoid

political influence from the farmers, the political influences creates

discrimination.
DEVELOPMENT BANK [PCARDB OR PLD] should frame the schedule for
loans lending to the farmers in required time.
4.
The farmers are required more and more medium term and long term loans for
purchasing the tractors and new technological instruments and horticulture
purpose for the sake of this requirements they should provide long term loans.
5. If bank adopted the long term loan schemes they necessary to set the
instalments schemes for loans collection this is most required one.
6. Present agricultural loan budgeting is not sufficient for agriculture
requirements for this reason they should increase the budgeting funds.
DEVELOPMENT BANK [PCARDB OR PLD] should framing the separate
council and members for agriculture loan given on the basis of systematic
analysis of the farmer requirements.
DEVELOPMENT BANK [PCARDB OR PLD] should provide the training
programs to the farmers for how to conducting agriculture operations in a
specified time and limited available fund and how to utilize the funds,
because of they are illiterates.
9. New and special schemes from the PRIMARY CO-OPERATIVE AND
AGRICULTURAL AND RURAL DEVELOPMENT BANK [PCARDB OR
PLD]is required for promoting and developing agriculture sector.
10. Along with agriculture loan they should provide merchant banking and agent
banking services to the customers loyalty customer loyalty and their
interpretation.

CONCLUSION
The PRIMARY CO-OPERATIVE AND AGRICULTURAL AND RURAL

DEVELOPMENT BANK [PCARDB OR PLD] linked with its apex institutions those are
RBI and NABARD these institutions give guidelines to the SCB’S and PCARDB’S
orPLD.
The PCARDB provide a triangular type of services to their customers and it is one
and only the bank for promoting agriculture operations with a less interest rates. It
was established in the year 1954 till from they provide agriculture assistance now also.
It provides short term , medium term and long term assistance to he farmers they meet
optimum requirements the agriculture is a back bone of thee every country and the
country’s GDP depends on agriculture. Presently PCARDB bank done well job in the
rural area development.
IN the year 2016 and 2017 they had special programmes for agriculture it’s worthy
and effective utilization in the assessment year.
Over all benefits from the PCARDB TO THE RURAL agriculture is effective and
some more schemes were required for further agricultural development.
BIBLIOGRAPHY
Name of the author Name of the book Edition Name of the

publisher
Dr.Purushotamma K.S Indian Financial 2009 Vision book house

BharatishRao system
O.R.KrishnaswamyB.G.Sathya Business Reasearch 2008 Himalaya publishing

Prasad Methods House
Web sites:
www.pcardb& pldbank.com
www.wikipedia.com
www.askanswers.com
[email protected]
ANNEXURES
BALANCE SHEET OF PLD BANK OF INDIA …………………..IN RS.(LAKHS) (CR)

……………………
particulars Mar17 Mar16 Mar15

CAPITAL AND
LIABILITIES: 700 650 600
TOTAL SHARE 600 525 475
CAPITAL 100,000 90000 85000
EQUOTY SHARE 101,300 901125 86075
CAPITAL 2,50,000 225000 200000
RESERVES 2,05,00,000 19000000 185000

NET WORTH 2,07,50,000 20126125 00
sDEPOSITS 2,00,000 180000 187860
BORROWINGS 2,10,51,300 20306125 75
TOTAL DEBT 150000
OTHER LIABILITIES 18936075
AND PROVISIONS
TOTAL 100,80,000 9008000
LIABILITIES 50,000 60000
ASSESTS 25,00,000 2300000 9908000
CASH&BALANCES 0,0 0.0 80000
WITH RBI 2500 0.0 2500000
BALANCE MONEY 0.00 0.0 200000
AT CALLS 200000 0.0
ADVANCES 8290800 8588125 0.0
INVESTMENTS 2,10,51,300 0.0 0.0
GROSS BLOCK 0.0 0.0 250000
NET BLOCK 0.0 5998075
CAPITAL WORK IN 189360
PEOGRESS
OTHER ASSESTS 75
TOTAL ASSESTS 0.0
CONTINGENT 0.0
LIABILITIES
BOOKS VALUE (rs)


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A STUDY ON ROLE OF BANK IN AGRICULTURAL FINANCING WITH

SPECIAL REFERENCE TO PLD BANK KOLAR.

IMPORTANCE OF AGRICULTURE FINANCE

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 2

ROLE OF AGRICULTURE FINANCE

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 3

STATUS OF AGRICULTURE FINANCE

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 4

1 On the basis of time

 Medium-Term (from 15 months up to 5 years):

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 5

Credit is also classified on the basis of lender such as

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 6

fisherman, rural artisans etc. or agricultural labourers, marginal/small/ medium/large farmers,

SOURCE OF AGRICULTURAL FINANCE

 Money lenders: Despite rapid development happening in rural branches of different

Institutional Credit Agencies

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 8

CO OPERATIVE CREDIT ORGANISATION

AGRICULTURAL COOPERATIVE SOCIETIES (PACS)

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 9

 They supervise the end use of credit;

 They make available fertilizers and insecticides to the needy farmers;

 They provide machinery on hire basis to the farmers;

 They provide storage facilities and marketing finance;

PRIMARY LAND DEVELOPMENT BANKS (PLDBs)

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 10

Agriculture is always exposed to an uncontrolled environment, unlike other production

Categories of Priority Sector

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 11

AGRICULTURAL DEBT WAIVER AND DEBT RELIEF SCHEME

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 12

Cooperative Credit Institution means a cooperative society that

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 13

The following loans shall not be included in the eligible amount:

 Advances against pledge or hypothecation of agricultural produce other than standing

 Agricultural finance to corporates, partnership firms, societies other than cooperative

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 14

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 15

Interest and other charges

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 16

Crop insurance is undertaken by agricultural producers, including farmers, ranchers, and

CROP INSURANCE HISTORY

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 17

CROP INSURANCE RISKS COVERED

CROP INSURANCE SCHEMES IN INDIA

In order to provide a boost to the agriculture in India, a number of

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 18

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 19

AGRICULTURE SCHEMES PROVIDED BY VARIOUS SECTORS OF BANKS

AGRICULTURAL GOLD LOANS

LAND PURCHASE SCHEME

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 20

 Purchase of farm equipments.

 Registration charges & stamp duty.

Mortgage of land to be purchased

How to repay the loan

GOVERNMENT COLLEGE FOR WOMEN, KOLAR. Page 21

MINOR IRRIGATION SCHEMES