Agricultural Finance (2024)

The means of Agricultural finance typically is examining, studying, and exploring the financial factors of the farm business, which is the core sector of India. The financial factors contain money significance connecting to the production of disposal and their agricultural products. Agricultural finance is analyzed into two categories one is the micro, and another is the macro level. The Types of Agricultural Loans in India are as National Bank for Agriculture and Rural Development. It is the exclusive bank for giving the farmers a lot of financial support. Another type is the Kisan Credit Card Scheme, Private Sector Bank Agricultural Loans, Loans by Nationalized Banks, and Loans by State Bank of India. To know in detail about all its types, you must follow the below points.

Agricultural Finance

Agriculture finance is one of the most common and prominent things, especially for the farmers. It is only provided to the farmers by many banks and commercial sectors. Any farmer can take agriculture loans to buy the equipment related to his farming or production. The need for agriculture finance is the purchase of digging and tube wells, agricultural implements, seeds, marketing of agricultural produce, livestock, repair of wells, fertilizers, affecting permanent improvements on the land, manures, payment of wage, etc.

Agricultural finance commonly means examining, studying, and investigating the

financial elements of the farm business. The farm business is also known as the core sector of India. The financial characteristics comprise money significance conveying to the production of agricultural products and their disposal.

Definition of agriculture finance

Following is the definition of agriculture finance. If you want to know about it, you must know it through three. These are;

Murray (1953) described agricultural finance. Agriculture finance is also known as “a financial analysis of borrowing funds and reserves by farmers, the operation of farm lending agencies, association and of organization interest in loans for agriculture .”

Another definition of agriculture finance is given according to Tandon and Dhondyal (1962). He specified the term “agricultural and another in finance.” It is known as an associate of agricultural economics, which negotiates with financial or economic resources that all are connected to individual farm divisions.”

Types of Agricultural Loans in India

The farmers can take a loan for the various activities of agriculture. These activities include Storage purposes, Expansion of the production, product marketing, Finance, conducting day-to-day processes, Buying land, and Purchasing farming equipment or machineries such as tractors and harvesters. There are too many types of agricultural loans in India. If you want to know about them, you can follow the below-given points.

• The first type of agriculture finance is Crop Loan. Any farmer can take a crop loan through the National Bank for Agriculture and Rural Development Bank and other commercial sector banks.
• Apart from this, the Kisan Credit Card is also another type of agriculture loan in India. It was launched in India for the first time by the Indian banks in 1998. Any farmer can take the borrowed funds at 7 percent per annum and more than amounts up to Rs. 3 lakh.
• Apart from this, another type of Agricultural loan in India is the Combine Harvester Loan, Multipurpose Gold Loan, Drip Irrigation Loan, Tractor Loan, Poultry Loan, and Dairy Loan.
• The National Bank for Agriculture and Rural Development is one of the best banks to take loans for farmers. The NABARD is the exclusive and most wondrous bank that provides financial help to the farmers. The Kisan Credit Card Scheme, Loans by Nationalized Banks, Private Sector Bank Agricultural Loans, and Loans by State Bank of India is also a type of agriculture loan.

So, these are the Types of Agricultural Loans in India. Any farmer can benefit from these loans from specified banks and agricultural sectors.

The Need for Agriculture Finance

The need for agriculture finance in this current time is more than before. Some farmers take this aid especially to accomplish their production needs and buy various kinds of farming instruments. Moreover, the other needs of the Agricultural finance are to meet various needs of the farmers like agricultural marketing, post-harvesting storage, and transport of produce, supply of power, need for good quality seeds, procurement of fertilizers, diseases, and issues like low rainfall, meeting the risks like damage due to pests, etc. So, all these are the needs of agriculture finance.

Conclusion

Thus, all this information is given in detail about Agricultural Finance. Agriculture finance is essentially the most valuable finance. It is specially provided only to the farmer to give aid to produce their products with sufficient money and proper instruments. There are too many types of Agricultural Loans in India. The farmers can avail of agricultural loans for these activities such as Running day-to-day operations, Storage purposes, Buying farm types of machinery such as harvesters, tractors, et cetera, Purchasing land, Product marketing loans, and other Expansion. If you would like to know about the Agriculture finance definition and The need for agriculture finance, then you must follow the above-given information.