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Study on Agriculture Loan lending System in PKPSS, Devar-Gennur
CHAPTER: 01
EXECUTIVE SUMMARY
This study evaluates the agricultural loan lending system of Prarthamika Krushi
Patina Sahakari Sang, a cooperative society serving farmers. The research aims
to assess the effectiveness of current loan procedures, identify factors affecting
loan repayment, and propose improvements.
An exploratory and analytical research design was employed, combining
primary data from surveys and interviews with secondary data from the
cooperative's records and relevant literature. Stratified and random sampling
ensured comprehensive and unbiased data collection.
Key findings reveal that while the cooperative plays a crucial role in providing
financial support, challenges such as high default rates and inefficiencies in loan
processing persist. Factors contributing to these issues include inadequate
financial literacy among members and external influences like adverse weather
conditions.
Recommendations include implementing enhanced financial literacy programs,
streamlining loan processing through automation, and introducing risk
mitigation strategies such as insurance products. These measures aim to
improve loan repayment rates and support farmers more effectively.
The study underscores the importance of a robust loan lending system for
agricultural sustainability and offers actionable insights for the cooperative to
enhance its impact. By addressing identified challenges, Prarthamika Krushi
Patina Sahakari Sang can better support its members and contribute to the
growth of the agricultural sector.
BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 1

CHAPTER: 02
INTRODUCTION OF THE TOPIC

BACKGROUND
Agricultural loans are essential financial tools that support farmers by providing
the necessary funds for various agricultural activities. The history of the
agricultural loan lending system in India reflects the evolution of agricultural
finance from informal to formal systems, influenced by various socio-economic
and political changes.
Pre-Independence Era
Before India gained independence in 1947, the agricultural finance system was
predominantly informal. Farmers relied heavily on moneylenders for credit,
often at exorbitant interest rates. This informal system was characterized by
high levels of exploitation, as moneylenders charged usurious rates and used
unfair practices to recover loans, pushing many farmers into perpetual debt.
Post-Independence Initiatives
With independence, the Indian government recognized the critical need for a
structured agricultural finance system to support the rural economy. The
government took significant steps to formalize agricultural credit:
1. Cooperative Credit Societies Act, 1904 and 1912: Even before independence,
the foundation for cooperative credit societies was laid to provide farmers with
an alternative to moneylenders. These societies aimed to promote self-help and
mutual assistance among farmers.
2. Nationalization of Banks in 1969: The government nationalized major banks,

mandating them to direct a portion of their lending to the agriculture sector. This

policy aimed to ensure that credit reached rural areas and small-scale farmers
who were previously neglected by commercial banks.
3. Establishment of Regional Rural Banks (RRBs) in 1975: To further enhance

rural banking, the government established RRBs to provide credit and other
financial services to small and marginal farmers, artisans, and agricultural
laborers.
Green Revolution (1960s-1970s)
The Green Revolution marked a turning point in Indian agriculture, with the
introduction of high-yielding variety seeds, fertilizers, and irrigation techniques.
This agricultural transformation increased the demand for credit, leading to
substantial government and institutional support for agricultural loans. Banks
and cooperatives played a crucial role in providing the necessary funds to
farmers to adopt these new technologies.
1980s-1990s: Institutional Development
In 1982, the establishment of the National Bank for Agriculture and Rural
Development (NABARD) was a significant milestone. NABARD was set up to
oversee and provide refinance support to the rural credit system, including
cooperatives, RRBs, and commercial banks. Its primary goal was to promote
sustainable and equitable agriculture and rural development through effective
credit support.
Additionally, during this period, several other key developments took place:

• Service Area Approach (1989): This policy mandated that each bank branch
should serve a specific area to enhance the distribution of credit in rural
regions.
• Lead Bank Scheme (1969): Under this scheme, a particular bank was
designated as the lead bank for each district to coordinate the efforts of all
banks operating in that district towards agricultural lending.
2000s-Present: Modernization and Schemes
In the 21st century, the focus has shifted towards making agricultural credit
more accessible and affordable. Key initiatives include:
1. Kisan Credit Card (KCC) Scheme (1998): This scheme aimed to provide
farmers with timely access to short-term credit at reasonable interest rates. The
KCC allowed farmers to withdraw cash and purchase inputs as needed, thus
simplifying the credit process.
2. Interest Subvention Schemes: To reduce the cost of borrowing, the

government introduced interest subvention schemes where a portion of the
interest rate is subsidized, making loans cheaper for farmers. This initiative has
been particularly effective in making credit more affordable and reducing the
financial burden on farmers.
3. Credit Guarantee Fund: The Credit Guarantee Fund for Micro Units
(CGFMU) was established to provide collateral-free loans to farmers and small
businesses, thereby encouraging banks to extend credit without stringent
collateral requirements. This has facilitated easier access to credit for small and
marginal farmers who often lack sufficient collateral.

4. Digitalization: The integration of technology in banking has streamlined the

loan application and disbursement process. Online banking, mobile banking
apps, and digital payment systems have made accessing and repaying loans
more convenient for farmers. Initiatives such as the Pradhan Mantri Jan Dhan
Yojana (PMJDY) have aimed at increasing financial inclusion by opening
millions of new bank accounts, thereby bringing more farmers into the formal
banking system.
5. Financial Literacy Programs: To ensure that farmers can effectively utilize

the financial products available to them, various financial literacy programs
have been launched. These programs educate farmers about different types of
loans, interest rates, repayment schedules, and the benefits of saving and
investment.
6. Agricultural Insurance: To mitigate the risks associated with farming, the

government introduced schemes like the Pradhan Mantri Fasal Bima Yojana
(PMFBY). This crop insurance scheme provides coverage to farmers against
losses due to natural calamities, pests, and diseases, thereby protecting their
income and ensuring their ability to repay loans.
7. Direct Benefit Transfer (DBT): The government has implemented DBT to

transfer subsidies and benefits directly into the bank accounts of beneficiaries.
This system has reduced leakages and ensured that subsidies reach the intended
recipients, thereby enhancing their financial stability.
8. Microfinance and Self-Help Groups (SHGs): Microfinance institutions and

SHGs have played a crucial role in providing credit to small and marginal
farmers, particularly women. These groups pool their resources and provide

loans to members at lower interest rates, promoting financial inclusion and

empowerment.
The historical evolution of the agricultural loan lending system in India reflects
the country's efforts to support its agricultural sector through various financial
initiatives. From informal credit systems to the establishment of formal banking
institutions and the introduction of innovative credit schemes, these
developments have significantly contributed to enhancing agricultural
productivity and improving the livelihoods of farmers. Despite ongoing
challenges, continuous efforts to modernize and expand the reach of agricultural
credit are essential for the sustainable growth of the agricultural sector.

INTRODUCTION OF THE ORGANISATION.
The agricultural cooperative sector in India forms a crucial component of the

country's rural economy, serving as a vital support system for farmers across
the nation. Agricultural cooperatives are community-based organizations that
operate on the principles of mutual assistance, self-help, and democratic
decision-making. These cooperatives play a pivotal role in providing various
services to farmers, including credit facilities, input supply, marketing
assistance, and access to technology and information.

COMPANY PROFILE
Name of the company Prarthamik Krushi Pattina sahakari Sangh

Niyamit, Devar-Gennur
Address Devar-Gennur, Pincode: 586125
Tq: Babaleshwar Dt: Vijayapur
Legal Name of Business Primary Agricultural Credit Co-Op Society

Limited
GST Number 29AACAP9675P1ZF
Constitution Type Society/ Club/ Trust/ AOP
Tax Tayer Type Regular
Effective Date of Registration July 1,2017
Manager Mr. Anand Pujari
Area of operation Devar-Gennur.
Logo

Objective of the Study
The primary objective of this study is to analyze the agriculture loan lending
system in Prarthamika Krushi Patina Sahakari Sangh (PKPSS) and evaluate its
effectiveness in meeting the financial needs of farmers. The study aims to:
1) Assess the various types of agricultural loans offered by PKPSS,
including short-term and long-term loans, and evaluate their
accessibility, affordability, and terms and conditions.
2) Examine the loan disbursement and repayment processes followed by
PKPSS, including the documentation requirements, approval
procedures, and repayment schedules.
3) Analyze the impact of agricultural loans provided by PKPSS on the
productivity, income, and livelihoods of farmers, considering factors
such as crop yields, income levels, and household welfare.
4) Identify the challenges and constraints faced by PKPSS in providing
agricultural loans, including issues related to loan recovery, default
rates, and operational inefficiencies.
5) Propose recommendations and strategies to enhance the effectiveness
and efficiency of the agriculture loan lending system in PKPSS, with the
aim of improving access to credit, reducing loan defaults, and
promoting sustainable agricultural development.
Finance in villages is of two types: -

1. Agricultural finance (credit)
2. Non-Agricultural finance

Product Mix:
1. Short-term Agricultural Loans:

- These loans are tailored to meet the immediate financial requirements of
farmers for seasonal activities like sowing, cultivation, and harvesting.
- They typically have a shorter repayment period, often aligned with the crop
cycle or harvesting season.
- The loan amount may vary based on factors such as the type of crop, acreage,
and anticipated yield.
2. Long-term Agricultural Loans:

- Long-term loans are designed to support farmers in making capital
investments for durable assets such as land purchase, farm equipment, and
irrigation infrastructure.
- Repayment schedules for long-term loans are extended over several years,
allowing farmers to repay the borrowed amount in installments.
- Interest rates for long-term loans may be fixed or variable, depending on
market conditions and government policies.
3. Savings Accounts:
- PKPSS offers savings accounts to its members, providing them with a safe
and secure avenue to deposit their savings.
- Savings accounts may come with features such as interest accrual, online
banking facilities, and ATM/debit card access.
- Members can deposit and withdraw funds from their savings accounts as per
their convenience, thereby promoting financial discipline and liquidity
management.

4. Fixed and Recurring Deposits:

- Fixed and recurring deposit schemes allow members to invest their surplus
funds with PKPSS for a predetermined period, earning a competitive rate of
interest.
- Fixed deposits offer a fixed interest rate for the entire tenure, while recurring
deposits allow members to make regular contributions towards their savings at
predefined intervals.
- Both fixed and recurring deposits provide members with a secure investment
option and help them accumulate savings over time.
5. Insurance Services:
- PKPSS facilitates access to insurance products for its members to safeguard
against various risks associated with agriculture and livelihoods.
- Insurance coverage may include crop insurance, livestock insurance, health
insurance, and personal accident insurance.
- By offering insurance services, PKPSS aims to mitigate the financial impact
of unforeseen events and protect the livelihoods of its members.
The agriculture loans offered by PKPSS can be categorized into

the following types:
1) Kisan Credit Card
2) Agriculture Gold Loan
3) Minor Irrigation for Agriculturists
4) Farm Mechanization for Agriculturists
5) Animal Husbandry
6) Horticulture
7) Financing Farmers for Land Purchase

8) Financing Two Wheelers to Farmers

9) Vermicompost
10) Layer poultry
11) Sprayer
12) Shade net Farming
13) Solar pump
14) Dairy
15) Farmhouse construction
Consumption Credit given by PKPSS:
Sr No Types of credit Loan amount Margin

A Crops loans & i. Up to Rs 50000/- No Margin
othershort-Term ii. Over Rs 50000/- 15 to 20%
loans (depends quantum
of finance)
B Term Loans i. Up to Rs 50000/- No
ii. Over Rs 50000/- Margin
15to 20%
2 Security norms
C Crop loans & other i. Up to Rs 50000/- Hypothecation of

short-Term loans ii. Over Rs 50000 crops.Mortgage of
land & third-party
guarantee.
D Term loans i. Up to Rs 50000/-
ii. Over Rs 50000/-

1. KISSAN CREDIT CARD (RUPAY)
Objective
To provide timely and adequate credit to farmers to meet their production credit
needs (cultivation expenses) besides meeting contingency expenses and
expenses related to ancillary activities through simplified procedure facilitating
the borrowers for availing loans as and when they need.
Purpose
Cultivation of crops Meeting the short-term credit needs of farmers for crop
production and allied activities etc. Maintenance of farm equipment’s etc.
Eligibility
Agriculture borrowers having good track record for the last 2 year ( i.e.
maintaining standard loan accounts)
Creditworthy new borrowers can also be financed.
Interest Rate
As applicable from time to time.

Amount
As decided by District Technical committee & limit worked out for the purpose.
Security
Mortgage of land. Hypothecation of crop/Assets.
Repayment
Revolving credit facility for 3 years.
Coinciding with harvesting of crops-season/marketing of produce.
2. Agriculture Gold Loans
Objective
To enables farmers to meet their short-term agricultural credit needs i.e. both
for crop production needs and also for meeting investment needs.
Purpose
Agri gold loan availed has to be invested by the borrowers either for meeting
crop production expenses and/or for creation of assets to be used. In his farming
operation or allied agricultural activities like dairy, Poultry, fisheries etc.

Eligibility
Any person engaged in agriculture or allied activities as well as persons engaged
in activities permitted by RBI to be classed under agriculture. It is not necessary
to insist for land record extract or physical inspection of the farm before sanction
of gold loans.
Margin
30% on price of gold (18,22 & 24 carat purity) less margin. The price of the
gold is advised by LHO at monthly interval.
Repayment
Cash Credit / Overdraft: Like KCC, it is a running account for a period of 3
years, subject to review (outstanding Vis-à-vis advance value of the ornaments
pledged) at annual interval.
3. Minor irrigation for Agriculturist
Purpose
Digging of new wells, revitalization of existing well, purchase of oil engine,
electric motor, pump set installation of pipe line, sprinkler, irrigation, drip
irrigation, tube well, bore well, etc.
Eligibility
Agriculturist who owns agricultural land.

Amount
For new dug wells as per the NABARD Unit costs for equipment’s /estimates.
Security
Mortgage of land,
Hypothecation of movable assets and guarantors.
Repayment
Depending upon the repaying capacity 7 to 11 years.
Other Terms & Conditions

Proposed well should be in white watershed area. It should not be in dark
watershed area.
4. Farm mechanization for Agriculturist
Purpose
Purchase of Tractors/Power tillers Purchase of Harvesters Purchase of
Threshers & other farm implements.

Eligibility
Agriculturist who owns at least 8 acres of Irrigated land. The Tractor should get
at least 1500 hours of work in a year.
Amount
As per cost of machinery.
Security
Hypothecation of Tractor/trolley and accessories, Mortgage of land.
Repayment
7 to 9 years.

Comprehensive insurance of machinery with bank clause.
5. Animal Husbandry
Purpose
Purchase of Cows/Buffaloes Poultry- Broiler Farm, Layers Farm, Hatchery
Sheep/Goat Rearing Construction of Byre, Purchase of Machinery Working
Capital Requirements.
Eligibility
Agriculturist, agri. Labor and / or those who have necessary expertise.

Amount
Animal cost - As per NABARD unit costs Others- as per the project.
Security
Hypothecation of Animals/Plant Machinery to be purchased Mortgage of land.
Repayment
4 to 5 years with suitable instalments.

Insurance of all animals is essential.
6. Horticulture
Purpose
Cultivation of fruit crops-mango, Pomegranate, Grapes etc.
Eligibility
Agriculturist with adequate provision of irrigation.

Amount
As per NABARD Unit costs/ Project.
Security
Mortgage of land. Hypothecation of crops.
Repayment
Within 15 years.
7. Financing farmer for land purchase
Purpose
For the cultivation of agriculture crop and producing food.
Eligibility
A person should be a farmer, dairy owner etc.
Amount security
As per NABARD Unit costs/ Project
Repayment
Within 15 years.

Terms and conditions

Applicant farmer may encourage to purchase the land at one place and not in
fragment holdings to step up productivity and save production expenses.
8. Financing Two Wheelers to Farmers
Purpose
For supervising agriculture operations or effective management of farm or
estate and for transportation of agricultural produce or input, labour, etc.
Eligibility
A person should posses a valid driving license or engage driver possessing valid
driving license.
Amount security
As per the cost of machinery.
Repayment
Within a period of 5-6 years.
Term and condition

KYC norms to be followed scrupulously.

9. Vermicompost
Purpose
It enhances soil fertility physically, chemically and biologically.
Eligibility
Small farmer, marginal farmer, association of person etc. are desirous of taking
up the activity on commercial basis Amount Up to 1.60 lakh.
Repayment
Loan to be repaid in monthly/quarterly/half yearly/yearly instalment in max 7
year with moratorium period of maximum 12 months.
10.Poultry Farming
Purpose
Construction of brooder/grower and layer sheds, feed Godown, labour quarters
etc.
Eligibility
The loan can be available by an individual who has experience in poultry
farming and has land for the construction of poultry sheds.

Amount
Up to 1 cr Repayment Within 5 years (in bi-monthly instalment) 38 Fishers.
11. Fishery
Purpose
For fish culture, boat loan, construction/deepening/widening/desilting of pond,
purchase of fingerlings, equipment, manure, feed and labour inputs etc.
Eligibility
All professional fisherman and farmer with knowledge in pisciculture.
Amount security
For loan up to Rs. 1 lakh. -Nil For loan above Rs. 1 lakh-Land mortgages.
Repayment
Maximum 48 months or 39 months.

Objective
• To improving quality production of milk at the farm level.
• To promote bulk financing in agriculture sector priority sector lending.
12.Dairy Farming
Purpose
For purchase of milch cattle and machines, utensils, construction of sheds, etc.
Eligibility
A milk producer co-operative society that is affiliated to the district milk union.
Amount
Maximum limit is Rs. 10 Lakh

Marketing Mix:
1. Product:
- PKPSS focuses on developing customized financial products and services
that cater to the specific needs and preferences of farmers.
- Products are designed to address the challenges faced by farmers in
accessing credit, managing savings, and protecting against risks.
2. Price:
- The pricing strategy adopted by PKPSS aims to strike a balance between
affordability for members and sustainability for the cooperative.
- Interest rates on loans and deposits are set competitively to attract members
while ensuring the financial viability of the organization.
3. Place:
- PKPSS operates through a network of branches and service centers
strategically located in rural areas to ensure proximity and accessibility for its
target audience.
- Branches are equipped with trained staff and modern banking infrastructure
to provide efficient and personalized services to members.
4. Promotion:
- PKPSS promotes its products and services through various channels,
including traditional advertising, digital marketing, community outreach
programs, and word-of-mouth referrals.
- Promotional campaigns focus on highlighting the benefits of banking with
PKPSS, such as competitive interest rates, personalized service, and community
development initiatives.

HR Policies:
1. Recruitment and Selection:

- PKPSS follows a transparent and merit-based recruitment process to attract
qualified candidates for vacant positions.
- Job vacancies are advertised internally and externally, and candidates are
selected based on their qualifications, experience, and alignment with the
organization's values.
2. Training and Development:

- PKPSS invests in the training and development of its employees to enhance
their skills, knowledge, and competencies.
- Training programs cover a wide range of topics, including banking
operations, customer service, technical skills, and leadership development.
3. Performance Management:
- PKPSS has a robust performance management system in place to evaluate
employee performance objectively and provide constructive feedback.
- Performance evaluations are conducted periodically, and employees are
rewarded and recognized for their contributions and achievements.
4. Employee Engagement:
- PKPSS promotes a culture of employee engagement and participation by
encouraging open communication, collaboration, and teamwork.
- Employee engagement initiatives include team-building activities, town hall
meetings, employee feedback mechanisms, and recognition programs.

5. Work-Life Balance:
- PKPSS recognizes the importance of maintaining a healthy work-life
balance and offers flexible work arrangements, leave policies, and wellness
programs to support employee well-being.
- Employee assistance programs are available to provide support and
resources for managing personal and professional challenges.
Prarthamika Krushi Patina Sahakari Sangh (PKPSS) plays a significant

role in providing financial support to farmers through its diverse range of
products and services. By understanding the organization's product mix,
marketing mix, and HR policies, this study aims to provide valuable insights
into the agriculture loan lending system in PKPSS and suggest
recommendations for its improvement.
❖ Types of Credit Societies
1. Primary Agricultural Credit Societies (PACS)
Primary Agricultural Credit Societies (PACS) are the grassroots-level

institutions of the cooperative credit structure in India. They are located at the
village level and serve as the primary point of contact for farmers seeking
financial assistance. PACS provide short-term and medium-term loans to
farmers for agricultural purposes, including crop cultivation, purchase of inputs,
and investment in farm machinery. Additionally, PACS also undertake other
cooperative activities such as collective procurement of inputs, marketing of
produce, and organizing training and awareness programs for farmers. PACS
play a crucial role in fostering financial inclusion and empowering rural
communities by providing accessible and affordable credit facilities.

2. District Central Cooperative Banks (DCCBs)
District Central Cooperative Banks (DCCBs) operate at the district level and
function as federations of PACS within their respective districts. DCCBs
provide financial and administrative support to PACS, facilitating the smooth
functioning of cooperative credit operations at the grassroots level. They act as
intermediaries between PACS and higher-level cooperative institutions, such as
State Cooperative Banks (SCBs) and national-level cooperative organizations.
DCCBs mobilize resources from PACS and other sources to provide credit
facilities to farmers and rural entrepreneurs. They also play a crucial role in
channelizing funds from apex institutions to the grassroots level and ensuring
the effective implementation of government-sponsored agricultural credit
schemes and programs.
3. State Cooperative Banks (SCBs)
State Cooperative Banks (SCBs) serve as apex institutions in the cooperative

credit structure of India. At the state level, SCBs provide a link between DCCBs
and the central cooperative banks, coordinating and overseeing cooperative
credit operations across the state. SCBs mobilize financial resources from
various sources, including deposits from PACS and DCCBs, borrowings from
financial institutions, and government support. They provide refinance
assistance to DCCBs and other cooperative institutions, ensuring adequate
liquidity for agricultural credit operations. SCBs also play a crucial role in
policy formulation, capacity building, and regulatory compliance within the
cooperative credit sector. Additionally, SCBs collaborate with national-level
cooperative organizations and government agencies to promote the

development of the agricultural cooperative sector and enhance the socio-

economic well-being of rural communities.
In summary, the three-tier structure of agricultural cooperatives in India,

comprising PACS, DCCBs, and SCBs, forms a robust framework for delivering
financial services to farmers and rural entrepreneurs. Through cooperative
principles of collective action and mutual assistance, these institutions
contribute significantly to the empowerment and sustainable development of
rural areas, thereby supporting the agrarian economy of the country.

Research Proposal
❖ Title: Enhancing the Effectiveness of Agricultural Loan Lending System:

A Case Study of Prarthamika Krushi Patina Sahakari Sangh Niyamit,
Devar-Gennur.
❖ Background Study:
Access to finance is crucial for the sustainable development of agriculture,
particularly in rural areas where smallholder farmers often face challenges in
accessing credit. Prarthamika Krushi Patina Sahakari Sang plays a vital role in
providing financial assistance to farmers in [Location], contributing to
agricultural productivity and rural livelihoods. However, challenges such as
high default rates and inefficiencies in loan processing may hinder the
cooperative's ability to support its members effectively. This research proposal
aims to investigate the current agricultural loan lending system at Prarthamika
Krushi Patina Sahakari Sang, identify key issues, and propose strategies for
improvement.
❖ Research Objectives:
• To evaluate the effectiveness of the current loan lending procedures.
• To identify factors influencing loan repayment behavior among
cooperative members.
• To assess the impact of agricultural loans on farm productivity and
income.
• To recommend measures for enhancing the efficiency and
sustainability of the loan lending system.

CHAPTER 03:
METHODOLOGY

RESEARCH METHODOLOGY
RESEARCH DESIGN
The research design adopted for this study is a combination of exploratory and
analytical approaches.
• Exploratory Research: Initially, an exploratory research design is
employed to gain a comprehensive understanding of the agricultural
loan lending system at Prarthamika Krushi Patina Sahakari Sang. This
involves a review of existing literature, interviews with key
stakeholders, and observations of the loan processing procedures. The
aim is to identify key variables, challenges, and opportunities within the
system.
• Analytical Research: Following the exploratory phase, an analytical
research design is implemented to analyze the collected data
quantitatively and qualitatively. This involves statistical analysis of
survey responses, thematic analysis of interview transcripts, and
comparison of findings with established theories and models in
agricultural finance.
Data Collection
Primary Data
Primary data is collected directly from the source, i.e., the cooperative society,
its members, and employees.
• Surveys: Structured questionnaires are designed to gather quantitative
data on loan utilization, repayment behavior, member satisfaction, and
demographic information. These surveys are administered in-person or
electronically to a sample of cooperative members.
• Interviews: In-depth interviews are conducted with key stakeholders
such as cooperative officials, loan officers, and selected members. These
interviews provide qualitative insights into the operational aspects of the
loan lending system, challenges faced by members, and suggestions for
improvement.

Secondary Data
Secondary data is gathered from existing records, reports, and publications
related to agricultural finance, cooperative societies, and relevant government
policies.
• Annual Reports: The cooperative's annual reports provide information
on loan disbursement, repayment rates, financial performance, and
member demographics.
• Research Papers: Published research papers and articles on agricultural
finance, cooperative management, and related topics are reviewed to
contextualize the findings and identify areas for further investigation.
Instruments for Data Collection
Questionnaires
The questionnaire is a structured tool designed to collect quantitative data from
cooperative members. It includes multiple-choice questions, Likert scale items,
and open-ended questions to capture a range of responses.
Sample questions:
1. How satisfied are you with the loan application process at Prarthamika
Krushi Patina Sahakari Sang?
• Very satisfied
• Somewhat satisfied
• Neutral
• Somewhat dissatisfied
• Very dissatisfied
2. What challenges have you encountered in repaying your agricultural
loans from the cooperative?
Interviews
Semi-structured interviews are conducted with cooperative officials, loan
officers, and selected members to gather qualitative insights.

Sample questions:
1. Can you describe the loan approval process followed by the
cooperative?
2. What are the common reasons for loan defaults among members?
3. How do you assess the effectiveness of the cooperative's financial
literacy programs for members?
Method for Data Collection

Data collection methods include in-person interactions, telephone surveys, and
email questionnaires.
• In-Person Interactions: Interviews and surveys are conducted face-to-
face with cooperative members and staff to ensure clarity and depth of
responses.
• Telephone Surveys: Members who are unable to participate in face-to-
face interactions due to geographical constraints are contacted via
telephone to complete the surveys.
• Email Questionnaires: Digital questionnaires are sent to members who
have provided their email addresses, offering convenience and
flexibility in data collection.
Limitations of the Study

• Sampling Bias: The study's findings may be influenced by the
characteristics of the sampled population, leading to potential biases in
generalizing the results to the entire cooperative membership.
• Response Bias: Responses obtained from surveys and interviews may
be subject to biases such as social desirability bias or recall bias,
impacting the accuracy and reliability of the data.
• Resource Constraints: Limited time and financial resources may
restrict the scope of data collection and analysis, potentially affecting
the comprehensiveness of the study.
• External Factors: Factors beyond the researcher's control, such as
changes in government policies or economic conditions, may influence
the findings and conclusions of the study.

Sample Interview Questions and Answers:
1. Question: How does the cooperative assess the creditworthiness of its

members before approving agricultural loans?
Answer: We evaluate the creditworthiness of members based on their
repayment history, collateral offered, and income stability. Additionally,
we may consider factors such as land ownership and previous loan
performance.
2. Question: What are the main criteria for determining the loan amount
and interest rates for agricultural loans?
Answer: The loan amount and interest rates are determined based on the
purpose of the loan, the borrower's creditworthiness, the value of
collateral, and prevailing market conditions. We strive to offer
competitive rates while ensuring the financial sustainability of the
cooperative.
3. Question: How does the cooperative support members in repaying their
loans during periods of financial difficulty?
Answer: We understand that farmers may face challenges due to factors
like crop failure or market fluctuations. In such cases, we offer flexible
repayment options, rescheduling of loan installments, or temporary
relief measures to help members overcome financial hardships and
avoid default.
4. Question: Can you describe the process of loan disbursement and
repayment at the cooperative?
Answer: Once a loan application is approved, the disbursement process
involves transferring the funds to the member's account or issuing a
check. Repayment is typically scheduled in installments, with options
for monthly, quarterly, or annual payments, depending on the loan terms
and member preferences.
5. Question: How does the cooperative ensure transparency and
accountability in its loan lending operations?
Answer: We maintain detailed records of loan transactions, including
disbursements, repayments, and any correspondence with members.
Regular audits are conducted to ensure compliance with regulatory
requirements and internal policies, fostering transparency and
accountability in our operations.


CHAPTER:3
ANALYSIS & FINDINGS

Sl. No Qualification No.of Percentage %

Respondents
1 Below SSLC 0 0%
2 SSLC 1 3.33%
3 PUC 5 16.66%
4 Graduate 9 30%
5 Post graduate 2 6.66%
6 Diploma 13 43.33%
Total 30 100%
Table:1 Table showing Education Qualification of employees.
Graph showing Education Qualification of employees in

BSML
45%
40% 43.33
%
35%
30%
30
25% %
20%
15% 16.66
%
10%
6.66
0 3.33
% % %
BELOW SSLC SSLC PUC GRADUATE PG DIPLOMA
INTERPRITATION: from the survey I come to know Among 100%

employees 0% of employees are below SSLC , 3.33% employees are SSLC,

16.66% of employees are PUC, 30% are employees are Graduate, 6.66% of
employees are Post Graduate and 43.33% of employees are diploma.
Table 2: Table showing experience of employees at BSML
Particular Respondents Percentage

Less than
year 11 36.66%
2 to 3 years 5 16.66%
3 to 5 years 2 6.66%
5 to 10 years 12 40%
Total 30 100%
Graph showing experience of employees at BSML

45.00%
40.00%
40%
35.00% 36.67%
30.00%
25.00%
20.00%
15.00% 16.67%
10.00%
5.00% 6.67%
0.00%
less than year 2 to 3 years 3 to 5 years 5 to 10 years
Response
INTERPRITATION: from the above graph we come to know Among 100%

employees 36.66% are experienced in less than one year, 16.66 employees are
2-3 years , 6.66% employees are 3-5 years and 6.666% of employees are
experienced in 5-10 years.

Table 3: Table showing employees opinion about basic facilities provided

in the company.
Particular Respondence Percentage

Very good 4 13.33%
Good 26 86.67%
Average 0 0%
Poor 0 0%
Total 30 100%
Graph showing employees opinion about the basic facilities

provided by company
100%
90.00
80 % 86.67%
70.00
60.00
50.00
40.00
30.00%
20.00%
10.00% 13.33%
0% 0%
0.00
% VERY GOO Average Poor
GOOD D quality of
Respons
e
INTERPRITATION: from the survey I, come to know Among 100%

(30)employees 13.33% of employees are having very good perception about the
companies facilities, 86.67% of employees are having a good perception about
facilities provided by company and no one is have a poor perception about the
facilities provided by company.

Table 4: Table showing regarding the response of organization of the

suggestion box in work place.
Particulars Respondents Percentage %

Yes 30 100%
No 0 0%
Total 30 100%
Graph showing the Response regarding the suggestion box in

work
100%
100
%
50%
0%
Yes. No
INTERPRITATION: from the survey we come to know Among the 100%(30)

of employees about the 100% of employees.

Table 5:Table Showing the location of employees from their work place.
Particulars Respondents Percentage

Local 8 26.67%
2-10 km 6 20%
10-20 km 4 13.33%
More than 20km 12 40%
Total 30 100%
Graph showing the location of employees from their work place

45.00%
40.00%
40%
35.00%
30.00%
25.00% 26.67%
20.00%
20%
15.00%
10.00% 13.33%
5.00%
0.00%
LOCAL 2-10KM 10-20KM MORE THAN 20KM
Response
INTERPRITATION: from the above chart we come to know Among

100% employees 26.67% are local, 20% of employees are coming from 2
to 10km, 13.33% are employees are coming from 10 to 20km, and 40% of
employees are coming from more than 20km to the work place.
Table 6: Table showing employees opinion about working environment in

the company


Very good 8 26.67%
Good 22 73.3%
Average 0 0%
Poor 0 0%
Total 30 100%
Graph showing the employees opinion about the working

environment
80.00%
70.00% 73.33%
60.00%
50.00%
40.00%
30.00%
20.00% 26.67%
10.00%
0% 0%
0.00%
VERY GOOD GOOD Average Poor
Response
INTERPRITATION: from the above chart we come to know Among

100% of employees their opinion about the working environment 26.67%
employees are told about the environment is very good, 73.33% employees
are told their opinion about the working environment is Good, and no one
told average or poor about the working environment.
Table 7: Table showing the response of conducting the training and
development programs in organisation.

Satisfied 30 100%
Dissatisfied 0 0%
Total 30 100%
Graph showing the response regardingcunducting of trainning and

development programs in organisation.
120%
100%
100%
80%
60%
40%
20%
0%
0% Satisfied Dissatisfied
Response
INTERPRITATION: from the above chart we come to know Among the

100%(30) of employees 30 employees say they are satisfied with the training
and development programme.
Table 8:Table showing employees views regarding how frequently

conduct such training and development programs in company

Half yearly 18 60%

Yearly 8 40%
For every 2year 0 0%
Total 30 100%
Graph showing employees views regarding how frequently conduct

Such training and development programs
70%
60%
60%
50%
40%
40%
30%
20%
10%
0%
0%
QUARTERLY YEARLY RFOR EVERY 2YEAR
Responses
INTERPRITATION: From the survey we come to know Among 100% (30)

of employees 60% employees say half yearly & 40% of the employees say
yearly, regarding the company frequency conducts the programmes.
Table 9: Table showing the Response regarding employees have been ever
promoted since joined this company.

Yes 19 63.33%
No 11 36.67%
Total 30 100%

graph showing response regarding employees promotion

70.00%
60.00% 63.33%
50.00%
40.00%
30.00% 36.67%
20.00%
10.00%
0.00%
YES NO
Response
INTERPRITATION : from the above chart we come to know Among

100%(30) of employees 63.33% employees are promoted and 36.67% of
employees are not promoted since they are joining in the company.
Table 10: Table showing the response regarding employees received

reward or recognition for performance well.
Particulars Respondents Percentage%

Yes 10 33.33%
No 20 66.67%
Total 30 100%

graph showing the response regarding employees recieved reward or

Recognition for perform well
80.00%
70.00%
60.00% 66.67%
50.00%
40.00%
30.00% 33.33%
20.00%
10.00%
0.00%
YES NO
Response
INTERPRITATION: from the above chart we come to know Among 100% of

employees 33.33% employees are received reward from company and 66.67%
of employees are not received reward from the company.
Table 11: Table showing employees which factor encourage to perform

well in organisation.

Salary 12 40%
Promotion 16 53.33%
Reward 0 0%
Motivational programme 2 6.66%
Total 30 100%

Graph showing employee which factor encourage to perform well

organisation
60%
50% 53.33%
40%
40%
30%
20%
10%
0% 6.66%
0%
SALARY PROMOTION REWARDS MOTIVATION
PROGRAMME
Response
INTERPRITATION: from the above chart we come to know Among the

100% of employees 40% of employees are encourages for salary, 53.33% of
employees are encourages for promotions and 6.66% of employees are
encourages for motivational programs.
Table 12 Table showing employees satisfaction level regarding salary.

Highly satisfied 6 20%
Satisfied 17 56.67%
Neither or nor satisfied 6 20%
Dissatisfied 1 3.33%
Total 30 100%

Graph showing employees satisfaction level regarding salary
60%
50% 56.67%
40%
30%
20%
20% 20%
10%
0% 3.33%
HIGHLY SATISFIED SATISFIED NEITHER OR NOR DISSATISFIED
SATISFIED
Response
INTERPRITATION: from the survey we come to know among the 100% of

employees 20% of employees are highly satisfied, 56.67% of the employees are
satisfied, 20% of employees are neither or nor satisfied and 3.33% of employees
are dissatisfied with their salary.
Table 13: Table showing views regarding employees received allowances
in organisation

Medical allowance 16 53.33%
Travel 4 13.33%
Education 0 0%
Accommodation 10 33.33%
Total 30 100%

Graph showing views regarding employees recieved allowance in

organisation
60.00%
50.00% 53.33%
40.00%
30.00% 33.33%
20.00%
10.00% 13.33%
0%
0.00%
MEDICAL TRAVEL EDUCATION ACCOMODATION
ALLOWANCE
Response
INTERPRITATION: from the above chart we come to know among the 100%
of the employees 53.33% of employees are receiving medical allowances ,
13.33% of the employees are receiving the travel allowances and 33.33% of
employees are receives the accommodations from the company.
Table:14 Table showing the response regarding company organise

refreshment activities for employees.

Yes 25 83.33%
No 5 16.67%
Total 30 100%

Table showing the response regarding company organises

refreshment activities for employees
90.00%
80.00%
83.33%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00% 16.67%
0.00%
YES NO
Response
INTERPRITATION : from the above chart we come to know among the

100% of the employees 83.33% of employees are given answer to Yes and
16.67% of the employees are given answer to No to refreshment activities for
employees company conducts or not..
Table: 15 Table showing the employees opinion regarding the policies of

organisation.

Excellent 13 43.33%
Average 6 20%
Good 8 26.67%
Satisfactory 3 10%
Total 30 100%

Graph showing the employees opinion regarding the policies of

the organisation
50.00%
45.00%
40.00% 43.33%
35.00%
30.00%
25.00% 26.67%
20.00%
15.00% 20%
10.00%
5.00% 10%
0.00%
EXCELLENT AVERAGE GOOD SATISFACTORY
Response
INTERPRITATION: from the above chart Regarding the policies of

organisation among the 100% of employees 43.33% of employees are says
excellent, 20% of employees are says average, 26.666% of employees are says
good, and 10% of employees are says satisfactory about the policies.
Table 16: Table showing the employees view on their satisfaction level
about the job in this company

Highly satisfied 7 23.33%
Satisfied 14 46.67%
Neither or nor satisfied 7 23.33%
Dissatisfied 2 6.67%
Total 30 100%

Graph showing the employees satisfaction level about the job

50.00%
45.00%
46.67%
40.00%
35.00%
30.00%
25.00%
20.00% 23.33% 23.33%
15.00%
10.00%
5.00%
6.67%
0.00%
HIGHLY SATISFIED SATISFIED NEITHER OR NOR DISSATISFIED
SATISFIED
Response
INTERPRITATION : from the above chart among the 100% of the employees
23.33% of employees are highly satisfied, 46.67% of employees are satisfied,
23.33% of employees are neither or nor satisfied and the 6.67% of the
employees are dissatisfied with their jobs .

FINDINGS :
(1) Many farmers are borrowing loan for agriculture loan for Irrigation i.e. Drip
Irrigation.
(2) Farmers are less aware about the other financial product related to the to
agriculture loan.
(3) The Awareness about the different financial product related to agriculture
loan is very less like N.H.B. (National Horticulture Board), Kisan credit card
and for Agri- business and Agri-clinic.
(4) No one farmer came to know through the TV so the very less awareness
through the T.V.
(5) Age group of 40-50 borrowing loan from the bank.
(6) In general observation found that many farmers are intentionally avoid
repayment of loan.
(7) If more than one agency lends money for the same purpose at the same time
there is an overlapping of credit to borrower.

CHAPTER:4
SUGGESTIONS/RECOMMENDATIONS

Suggestions
1) Looking at the level of awareness it is recommends that promotion of agriculture

loan different can be done in different ways.
2) Bank officers also have to increase the contacts with farmers. Encourage the people
by conducting seminars some programmers related to the agricultural schemes how
it is useful in remote areas. So, it creates awareness in the farmers.
3) Bank have to focus on enhancing the quality of some new schemes related to the
farm development, equipment, plantation and farm mechanization which are
helpful to fostering the agriculture production which are more important for the
development of Indian economy.
4) So, the Bank have so taken some efforts to create awareness about different
financial.
5) Product by taking some programmes and bank officers have play a proactive role
aggressive marketing of short term and investment credit to potential borrowers.
6) Bank will have to some promotional activities through T.V.
7) People of young age group who are risk takes by nature may be targeted separately.
At present era they are taking the decision related each and activity in the family.
So, the bank officers have to target the youngster's age group.
8) Some farmers are capable to repay the loan but they intentionally avoid to repay the
loan. In which the government & bark recovery policy should tighten-up. After
recovery of the funds can utilized for various purposes.
9) Because of overlapping of credit result in financial indiscipline both parts of lenders

& borrowers. There is strictly restrict to farmers to borrowing loan from more than
one agency.

CHAPTER: 5 LIMITATIONS OF THE STUDY

LIMITATIONS OF THE STUDY
1. Time Constraints
Limited Time for Data Collection
The time available for data collection was restricted, which may have impacted
the depth and breadth of information gathered. A more extended period would
have allowed for a more comprehensive data collection process, potentially
yielding more detailed insights into the loan lending system.
Short Analysis Period
The time allocated for data analysis was also limited. A longer analysis period
would have enabled a more thorough examination of the data, including more
advanced statistical analyses and deeper qualitative analysis.
2. Geographical Barriers
Accessibility of Remote Members
The cooperative serves a geographically dispersed membership, making it

challenging to access all members for interviews and surveys. Remote members
might have unique perspectives and experiences that are not fully captured in
the study due to logistical constraints.
Regional Variations
Agricultural practices and challenges can vary significantly by region. The

study may not fully account for these regional variations, potentially limiting
the generalizability of the findings to all members of the cooperative.
3. Response Bias

Self-Reported Data
The study relies heavily on self-reported data from surveys and interviews.
There is a risk that respondents may provide socially desirable answers or may
not accurately recall or report their experiences, leading to potential biases in
the data.
Non-Response Bias
Some members may choose not to participate in the study, and their
perspectives and experiences are thus not represented. This non-response bias
can affect the overall findings and conclusions.
4. Limited Secondary Data
Availability of Records
The availability and quality of secondary data from the cooperative’s records
and other sources were variable. Incomplete or outdated records may limit the
reliability of the secondary data used in the study.
Scope of Secondary Data
The secondary data available may not cover all aspects of the loan lending
system in detail, particularly qualitative insights into operational challenges and
member satisfaction.
5. Sample Size and Representation
Sample Size Limitations
The sample size for surveys and interviews, while representative, may not be
large enough to capture the full diversity of experiences and perspectives among

all cooperative members. A larger sample size would provide more robust and
generalizable results.
Representation of Sub-Groups
Certain sub-groups within the cooperative, such as smaller-scale farmers or

those engaged in niche agricultural activities, may be underrepresented in the
sample. Their specific needs and challenges might not be fully addressed in the
study.
6. External Factors
Unpredictable Weather Conditions
Agricultural productivity and loan repayment are highly influenced by weather

conditions, which are unpredictable. The study’s findings may not fully account
for the impact of extreme weather events or climate variability.
Market Volatility
The agricultural market is subject to price fluctuations that can affect farmers’
income and loan repayment capacity. The study may not fully capture the
dynamic nature of market conditions and their impact on the cooperative’s
members.
7. Data Collection Methods
Reliability of Instruments
The reliability of data collection instruments, such as questionnaires and

interview guides, may be affected by their design and administration. Ensuring
consistency and accuracy in data collection can be challenging.
Technological Barriers

Some members may face technological barriers in participating in online

surveys or email questionnaires, especially in regions with limited internet
access. This can affect the inclusivity and comprehensiveness of data collection.
8. Ethical Considerations
Informed Consent
While efforts were made to ensure informed consent, some participants may not
fully understand the implications of their participation, potentially affecting the
authenticity of their responses.
Confidentiality Concerns
Maintaining confidentiality and ensuring that participants feel safe to share their
honest opinions is crucial. Any lapses in confidentiality can affect the quality
and integrity of the data collected.

CHAPTER 6: CONCLUSION

CONCLUSION
After analysing & interpreting Data it was found that PKPSS is very good
facilities are provided to farmer's relation between the branch officers & the
farmers are very good. Related To Study
1) Maximum no, of farmers belong to age group 40-50 i.e. 40%. In India have a
Hindu undivided family system in which only one person is head of the family.
They have knowledge about farming activities. He can handle the all
responsibilities related to family. He also has handholding as a security.
2) In which the 82% of land belongs to the male farmers according to HUF. Head of
the family is a male farmer so the male farmer is more than female farmer.
3) Maximum number of farmers belongs to age Landholding 0-5 Acres i.e. The 44%.
It because of division of family. They also think that when small farm is available,
we can develop the land by using the different techniques like farm
mechanization, fertilizers & effective utilization of resources.
4) 60% farmers come to know through friends & relatives’ penetration of banking
sector reach to the remote consumers & create awareness among farmers about
the different loan scheme so the information is spread more through friends &
relatives.
5) Farmers said that approach of Bank officers towards farmers is co-operative Bank
officers aim to bridging the gap between their co-operative approach to friendly
approach and provide continuously inform about the different Scheme.
6) In the loan schemes many farmers take loan for irrigation Le. Drip irrigation for
horticulture plantation (Grapes, pomegranate) farmers also get subsidy for
plantation.50% of the total cost for Drip immigration.
7) Bank officers are co-operative & provide every information to farmers, which are
needed & provide knowledge about different schemes. They have full

involvement of Branch manager. Successful marketing of Agriculture loan with

zeal and mission.
8) Bank officers are co-operative & provide every information to farmers, which are
needed & provide knowledge about different schemes. They have full
involvement of Branch manager. Successful marketing of Agriculture loan with
zeal and mission.
9) The gap between sanctioned and disbursement is keep at minimum level cheap.
Timely and adequate, provision of bans. It helps agriculture diversification. The
very short period for sanctioning disbursement of loan said by 78% of farmers.
10) 92% farmers said that repayment of kisan is easy because they give some time to
repayment of ban. They encourage people by providing extensive credit and
smooth recovery. Adjustment in Borrowers Account in which the repayment
schedule will be drawn on the loan amount in such way that subsidy amount is
adjusted after the bank loan portion (excluding subsidy) is credited.
11) 96% farmers are satisfied about loan procedure because fewer documents are
required. It takes less five for sanctioning and disbursement. They consider
agriculture land as a security and sanctioned the loan otherwise it is very difficult
to get financial support because land is not easily converted into money. It
produces productive lending to farmer.

BIBLIOGRAPHY
BOOKS
• K. ASHWATHAPPA, “Human resources management”

• C R KOTHARI, “Research Methodology”
• Company magazines and website
WEBSITES
[email protected]
[email protected]

QUESTIONNAIRE:
Employee Job satisfaction at Prarthamika Krushi Patina Sahakari Sangh
I am Vijayalaxmi Bidari studying in final year B.B.A in Basaveshwar Commerce

College, Bagalkot. As a part of academic, we are supposed to undertake an in-
plant training, in this regard. I have undertaken a project on “A study on
Customer Satisfaction in issuing of Agricultural Loan from PKPSS Devar-
Gennur” I am thankful to you help me in fitting-up these questionnaires.
1] General Information:
Name: Gender: Mobile:

Age: Address:
2] What is your qualification?
A] Below SSLC [ ] B] SSLC [ ]

C] PUC [ ] D] Graduate [ ]
E] Diploma [ ] F] Postgraduate [ ]
3] How long have you been working in the organization
A] Less than year [ ] B] 2 to 3 year [ ]
C] 3 to 5 year [ ] D] 5 to 10 year [ ]
4] What is your perception about the basic facilities provided by your company?
A] Very good [ ] B]Good [ ]
C] Average [ ] D] Poor [ ]

5] Do you have suggestion box in work place?
A] yes [ ]
B] No [ ]
6] How far are you located from work place?
A] Local [ ] B] 2-10 km [ ]
B] 10-20 km [ ] C]More than 20 km [ ]
7] What is your opinion about working environment of you company?
A] Very good [ ] B] Good [ ]

8] Does your company conduct training and development program?
A] Yes [ ] B] No [ ]
9] If yes how frequently does the company conduct such programs?

A] Half yearly [ ] B]Yearly [ ]
C] For every 2 year [ ]
10] Have you been ever promoted since you joined this company?
A] Yes [ ] B] No [ ]
11]Have you ever received reward or recognition for performance well?
A] Yes [ ] B] No [ ]

12]How senior assist you on your work?
A] Excellent [ ] B] Good [ ]
13] Which of the following allowance you received from your company?
A] Medical allowance [ ] B] Travel [ ]
C] Education [ ] D] Accommodation [ ]
14] Do you get opportunity for professional growth?
A] Yes [ ] B]No [ ]
15] Does your company organize refreshment activities for employee?
A] Yes [ ] B]No [ ]
16] What is your opinion regarding the policies of organization?
A]Excellent [ ] B] Average [ ]
C] Good [ ] D] Satisfactory [ ]
17] What is your overall satisfaction level regarding your job in this company?

Highly Satisfied Neither satisfied Dissatisfied

Highly
Satisfied Nor dissatisfied Dissatisfied
18] Suggestion related to job satisfaction?
THANK YOU

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Study on Agriculture Loan lending System in PKPSS, Devar-Gennur

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 1

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 2

2. Nationalization of Banks in 1969: The government nationalized major banks,

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 3

3. Establishment of Regional Rural Banks (RRBs) in 1975: To further enhance

Green Revolution (1960s-1970s)

1980s-1990s: Institutional Development

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 4

2000s-Present: Modernization and Schemes

2. Interest Subvention Schemes: To reduce the cost of borrowing, the

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 5

4. Digitalization: The integration of technology in banking has streamlined the

5. Financial Literacy Programs: To ensure that farmers can effectively utilize

6. Agricultural Insurance: To mitigate the risks associated with farming, the

7. Direct Benefit Transfer (DBT): The government has implemented DBT to

8. Microfinance and Self-Help Groups (SHGs): Microfinance institutions and

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 6

loans to members at lower interest rates, promoting financial inclusion and

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 7

INTRODUCTION OF THE ORGANISATION.

The agricultural cooperative sector in India forms a crucial component of the

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 8

Name of the company Prarthamik Krushi Pattina sahakari Sangh

Legal Name of Business Primary Agricultural Credit Co-Op Society

GST Number 29AACAP9675P1ZF

Constitution Type Society/ Club/ Trust/ AOP

Tax Tayer Type Regular

Effective Date of Registration July 1,2017

Manager Mr. Anand Pujari

Area of operation Devar-Gennur.

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 9

Objective of the Study

Finance in villages is of two types: -

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 10

1. Short-term Agricultural Loans:

2. Long-term Agricultural Loans:

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 11

4. Fixed and Recurring Deposits:

The agriculture loans offered by PKPSS can be categorized into

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 12

8) Financing Two Wheelers to Farmers

Consumption Credit given by PKPSS:

Sr No Types of credit Loan amount Margin

C Crop loans & other i. Up to Rs 50000/- Hypothecation of

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 13

1. KISSAN CREDIT CARD (RUPAY)

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 14

2. Agriculture Gold Loans

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 15

3. Minor irrigation for Agriculturist

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 16

Other Terms & Conditions

4. Farm mechanization for Agriculturist

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 17

Other Terms & Conditions

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 18

Other Terms & Conditions

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 19

BASAVESHWAR COMMERCE COLLEGE BAGALKOT Page 20