“A FIELD STUDY ON AGRICULTURE LOAN”

Dissertation submitted in partial fulfillment of the requirements for the award

of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

Of
BANGALORE UNIVERSITY

2022-23

Submitted By

MANUSHREE
Reg. No: 20KQC26019
Under the guidance of
MRS. LAKSHMIDEVAMMA
M.com, NET

ASSISTANT PROFESSOR

DEPARTMENT OF COMMERCE AND ADMINISTRATION

RURAL COLLEGE

KANAKAPURA – 562117

(Affiliated to Bangalore University)

 DEPARTMENT OF COMMERCE AND ADMINISTRATION

COLLEGE CERTIFICATE

This is to certify that MANUSHREE has successfully completed the project

titled “A FIFLD STUDY ON AGRICULTURE LOAN”. This report
submitted in partial fulfillment of the degree of Bachelor of Business
Administration of Bangalore University.

This report work has not been published or not submitted either wholly or
partially for the award of any degree or diploma. This is an original work
done by the student.

Prof,M T Balakrishna Msc MPhil Dr. Thammannagowda Hema N MBA, M.com, B.Ed., KSET
Principal M.com, M.Phil., PhD Co- Ordinator ,Department of
Rural College HOD Department of Commerce Commerce and administration
 GUIDE CERTIFICATE

MRS.LAKSHMI DEVAMMA. M.COM, NET,

ASSISTANT PROFESSOR

DEPARTMENT OF COMMERCE

RURAL DEGREE COLLEGE, KANAKAPURA

562117.

This is to certify that the report “A STUDY ON IMPACT OF AGRICULTURE

LOAN” is based on the study conducted by MANUSHREE under my guidance. This

report has not formed the basis for the award of any other degree/diploma by any other

University.

Place: Kanakapura Signature of the guide

Date: (MRS.LAKSHMIDEVAMMA)
 DECLARATION

I, the undersigned, hereby declare that this report entitled “A STUDY ON

AGRICULTURE LOAN” is a genuine work prepared by me, under the guidance of

MRS. LAKSHMIDEVAMMA and this is my original work. The empirical findings in the

report are based on the data collected at the above said industries, presented in this

report is not copied from any other source. This case study analysis report has not been

submitted for the award of any degree or diploma either in Bangalore University or any

other university. This work is humbly submitted to Rural Degree College for the award of

the degree of Bachelor of Business Administration.

Place: Kanakapura
Date:

(MANUSHREE)
 ACKNOWLEDGEMENT

I thank my parents for their support and encouragement for completing the project.

I express my gratitude to our principal Prof. M T Balakrishna Sir for their support and
blessings.

I sincerely thank my guide Mrs. LAKSHMIDEVAMMA and Assistant professor for her
constant encouragement and support.

I would like to thank BBA coordinator and Associate Professor Mrs. HEMA N for her
support.

I would like to thank students and management for their support.

I finally thank the GOD and my parents for the blessing.

Place: Kanakapura
Date: (MANUSHREE)
 TABLE OF CONTENT

CHAPTER NO CHAPTER NAME PAGE NO

1 INTRODUCTION 1 - 24

2 RESEARCH DESIGN 25 -28

3 DATA ANALYSIS AND 29 -51

INTERPRETATION

4 FINDING SUGGESTION 52- 54

AND CONCLUSION

BIBLIOGRAPHY 55

ANNEXURE 56-58
 TABLE CONTENT OF DATA ANALYSIS

Table TITLE PAGE.NO

Number

3.1 Table Showing respondents towards age classification of 29

respondents
Table Showing respondents towards Gender classification 30
3.2 of respondents
Table Showing respondents towards marital status 31
3.3 classification of respondents
Table Showing respondents towards Profession 32
3.4 classification of respondents
Table Showing respondents towards incomes 33
3.5 classification of respondents

Table Showing respondents towards Customer 34

3.6 Preference towards Banking Sectors classification
respondents

Table Showing respondents towards Attribute of the Bank 35

3.7 classification
Respondents
Table Showing respondents towards Purpose of 36
3.8 agriculture loan respondents
Table Showing respondents towards Scheme of 37
3.9 agriculture loan classification respondents
Table Showing respondents towards Typed of agriculture 38
3.10 loan classification respondents.
Table Showing respondents towards why you are apply 39
3.11 loan in bank classification respondents
Table Showing respondents towards Showing the 40
3.12
familierness of agriculture loan classification respondents
3.13 Table Showing respondents towards Able to access credit 41
on favorable loan term classification respondents

Table Showing respondents towards Sources of Income 42

3.14 other than forming Classification respondents
 Table Showing respondents towards Bank interest rate 43
3.15 afforded by Bank classification respondents
Table Showing respondents towards Forming experiences 44
3.16 classification respondents
Table Showing respondents towards how many acres of in 45
3.17 productions forming classification respondents
Table Showing respondents towards and in mortgage in 46
3.18 the bank classification respondents
Table Showing respondents towards Forming land is 47
3.19 owned or leases classification respondents
Table Showing respondents toward Challenges faced by 48
3.20 Indian Agriculture loan borrowers classification
respondents

Table Showing respondents towards Do you think bank 49

3.21 sector all your banking needs provided classification
respondents

Table showing respondents towards Which of the 50

3.22 following more importance your bank classification
respondents
3.23 Table Showing respondents towards Whether the Loan 51
Application is Complete or not ? classification respondents
 GRAPH CONTENT OF DATA ANALYSIS

Graph TITLE PAGE.NO

Number

3.1 Graph Showing respondents towards age classification of 29

respondents
Graph Showing respondents towards Gender classification 30
3.2 of respondents
Graph Showing respondents towards marital status 31
3.3 classification of respondents
Graph Showing respondents towards Profession 32
3.4 classification of respondents
Graph Showing respondents towards incomes 33
3.5 classification of respondents

Graph showing respondents towards Customer 34

3.6 Preference towards Banking Sectors classification
respondents

Graph Showing respondents towards Attribute of the 35

3.7 Bank classification
Respondents
Graph Showing respondents towards Purpose of 36
3.8 agriculture loan respondents
Graph Showing respondents towards Scheme of 37
3.9 agriculture loan classification respondents
Graph Showing respondents towards Typed of 38
3.10 agriculture loan classification respondents.
Graph Showing respondents towards why you are apply 39
3.11 loan in bank classification respondents
Graph Showing respondents towards Showing the 40
3.12 familierness of agriculture loan classification respondents
3.13 Graph Showing respondents towards Able to access credit 41
on favorable loan term classification respondents

Graph Showing respondents towards Sources of Income 42

3.14 other than forming Classification respondents
Graph Showing respondents towards Bank interest rate 43
3.15 afforded by Bank classification respondents
 Graph Showing respondents towards Forming 44
3.16 experiences classification respondents
Graph Showing respondents towards how many acres of 45
3.17 in productions forming classification respondents
Graph Showing respondents towards and in mortgage 46
3.18 in the bank classification respondents
Graph Showing respondents towards Forming land is 47
3.19 owned or leases classification respondents
Graph Showing respondents toward Challenges faced by 48
3.20 Indian Agriculture loan borrowers classification
respondents

Graph Showing respondents towards Do you think bank 49

3.21 sector all your banking needs provided classification
respondents

Graph showing respondents towards Which of the 50

3.22 following more importance your bank classification
respondents
3.23 Graph Showing respondents towards Whether the Loan 51
Application is Complete or not ? classification respondents
 “A FIELD STUDY REPORT ON AGRICULTURE LOAN”

CHAPTER-1

INTRODUCTION

1 .1 Introduction Agriculture In India

We often hear that India is an agricultural country. This basically means that agriculture is an
important part of our livelihood. In India, agriculture is our primary economic activity and about two-
thirds of our population is engaged in the same. Let us get acquainted with types of farming done in
India.

1.2 Agriculture

The word agriculture is derived from a Latin word- ager or Agri meaning soil, and ‘culture’
meaning cultivation of the soil. In modern terms, agriculture comprises “the art and science of
cultivating the soil, growing crops and rearing livestock.”

You can consider farming to be rather a complete system which includes inputs, processing, and
outputs. The inputs here are seeds, fertilizers, machinery, which then, undergoes operations
like ploughing, sowing, irrigation, weeding, and harvesting. And thus, we get the final outputs like
crops, dairy and poultry products.

1.3 Farming in India

Subsistence Farming

Subsistence Farming– This is farming which is done for consumption of the farm owners, can be
either Primitive or Intensive. Here the only aim is to fulfill the needs of the farmer and his family.

Primitive subsistence farming is the type of subsistence farming that is typically done on small areas
of land with traditional tools like hoe, Dao, digging sticks etc. This is rather the most natural method

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of growing crops, because, the natural environment like heat, rain, wind and condition of the soil
contribute to the growth of crops. Primitive farming further includes:

 Shifting cultivation: In this primitive method, farmers clear the cultivated land, after
harvesting the crops and burn the land. As a result, they maintain the fertility of the soil, so
whoever uses the land next can get a good yield. This method is known by different names in
different regions of India. Shifting cultivation is also practiced in some countries in South
America and South East Asia

 Nomadic herding: This kind of farming method involves herders and farmers travelling
from place to place with their flocks of animals. And, the herders also source wool, meat,
hide and dairy products from the livestock. Nomadic herding is very common in Rajasthan,
Jammu & Kashmir with herders rearing sheep, goats, yaks, and camel.

Intensive subsistence farming is quite in contrast to primitive farming, farmers practice intensive
farming on wider areas of land, use modern machinery and tools and add chemical fertilizers for
better crops.

Commercial Farming

When farmers grow crops and rear animals for economic activity, it becomes Commercial Farming.
Due to the need for a high amount of output, farmers cultivate larger areas of land, with heavy use
of machinery. Commercial Farming has three main categories:

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 Commercial grain farming– Just as the name suggests, in this method, farmers grow grains
and trade them in the market. Wheat and maize are the most common crops of commercial
grain farming. Farmers of Asia, Europe, temperate grasslands of North America generally
practice this type of farming.

 Plantation farming– Plantation farming is a mix of agriculture and industry and is practiced
across a vast area of land. Plantation owners usually grow a single crop like banana, coffee,
tea etc. in a plantation and use technological support to process the crop on the farm itself or
a factory attached to it. The end product also works as a raw material for industries. For
example, the rubber industry uses the rubber produced from its plantation as raw material.

 Mixed farming– This farming method involves cultivation of crops, rearing livestock and
growing their fodder. It is a common practice in parts of USA, Australia, and New Zealand,
Europe, and South Africa to do mixed farming for a living.

1.4 Major Crops of India

With different kinds of farming methods to our knowledge, the farmers grow different kinds of
crops, from staple grains to industrial crops and plants.

 Rice – This is the staple food crop of the world. In India rice grows in areas with high heat,
humidity, and rainfall, like in West Bengal, Kerala and parts of North East. Around the
world, China is a leading producer of rice, followed by India, Japan, Sri Lanka, and
Bangladesh.

 Wheat – This is another staple food in the world which needs moderate temperature. Wheat
needs good rainfall during planting and strong sunshine while harvesting. As a result, wheat
in India mostly grows in the winter season, and in the northern states of the country.

 Maize – Like wheat, maize also needs moderate rainfall and a good amount of sunshine.
Countries like North America, Mexico, China, Russia, Brazil, Canada, and India are primary
producers of maize.

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 Millets – They need low rainfall and dry soil and comprise grains like jowar, bajra and ragi.
Millets are common in Nigeria, China and dry areas of India.

 Cotton – A plantation crop, cotton is the main raw material for the cotton textile industry. It
grows best on black and alluvial soil, with low rainfall, no snow, and bright sunshine.
Countries like Egypt, China, Pakistan, USA, and India are leading producers of cotton.

 Jute – Also called ‘golden crop’, jute grows best in tropical regions, where rainfall is high
and the weather is humid. Hence you will find jute cultivation is common in the coastal areas
of India and Bangladesh.

 Tea – It is a plantation crop and an important beverage across Asia. Tea grows best in a
sloping landscape where rainfall is even all around the year and temperatures are cool and not
too high. China, India, Kenya, Sri Lanka are the major countries to produce the best tea in the
world.

 Coffee – Coffee grows best in a warm and wet climate and on well-drained soil. Hence,
countries like Brazil, Columbia, and India have the best coffee plantations in the world.

1.5 Loan

A sum of money borrowed from banks or other financial institutions

A loan is a sum of money that one or more individuals or companies borrow from banks or other
financial institutions so as to financially manage planned or unplanned events. In doing so, the
borrower incurs a debt, which he has to pay back with interest and within a given period of time.

1.6 Types of Loans

Loans can be classified further into secured and unsecured, open-end and closed-end, and
conventional types.

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1. Secured and Unsecured Loans

A secured loan is one that is backed by some form of collateral. For instance, most financial
institutions require borrowers to present their title deeds or other documents that show ownership
of an asset, until they repay the loans in full. Other assets that can be put up as collateral are
stocks, bonds, and personal property. Most people apply for secured loans when they want to
borrow large sums of money. Since lenders are not typically willing to lend large amounts of
money without collateral, they hold the recipients’ assets as a form of guarantee.

2. Open-End and Closed-End Loans

A loan can also be described as closed-end or open-end. With an open-ended loan, an individual
has the freedom to borrow over and over. Credit cards and lines of credits are perfect examples
of open-ended loans, although they both have credit restrictions. A credit limit is the highest sum
of money that one can borrow at any point.

Depending on an individual’s financial wants, he may choose to use all or just a portion of his
credit limit. Every time this person pays for an item with his credit card, the remaining available
credit decreases.

3. Conventional Loans

The term is often used when applying for a mortgage. It refers to a loan that is not insured by
government agencies such as the Rural Housing Service (RHS).

1.7 Introduction Agriculture Loan

Agricultural loan is offered by banks, micro finance institutions and also government
agencies to help develop India's agricultural sector. These loans can be availed to
finance agricultural projects such as purchasing land, upgrading or buying farm
machinery, constructing irrigation channels, building grain storage sheds etc.

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1.8 Features of Agriculture Loan

 End-use Flexibility: Agricultural loan can be availed to meet a variety of expenses

related to farm activities, such as to purchase new farmland/ cattle or to manage the
operating costs and other allied activities
 Various Types: Several types of agricultural loan exist on the basis of end use as well as
the repayment tenure
 Minimal Documentation: Generally, the agricultural loan can be availed with simple
and minimal documentation
 Collateral Optional: Both secured and unsecured agricultural loans are offered on the
basis of loan quantum and applicant profile

1.9 The main objectives of sustainable agriculture are:

 Make the best use of the resources available

 Minimize use of non-renewable resources
 Protect the health and safety of farm workers, local communities and society
 Protect and enhance the environment and natural resources
 Protect the economic viability of farming operations
 Provide sufficient financial reward to the farmer to enable continued production and
contribute to the well-being of the community
 Produce sufficient high-quality and safe food
 Build on available technology, knowledge and skills in ways that suit local conditions
and capacity.

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1.10 Agricultural Loan Interest Rate – 2022

The following table summarizes the interest rate of agricultural loans as well as Kisan Credit
Card as offered by some leading lenders:

Name of the Lender Rate of Interest (p.a)

State Bank of India (SBI)

7.00% onwards

Central Bank 7.00% onwards

Indus Ind Bank 9.00% onwards

ICICI Bank 8.25% onwards

In line with government schemes and

Axis Bank
depends on the applicant’s profile

Note: The above-mentioned interest rates, fees and charges may change and shall depend on the
sole discretion of the banks and RBI. Interest rates are updated as on Dec 2021.

1.11 Types of Agriculture Loan

Following are the major types of agricultural loans offered by various banks and other lenders in
India.

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On The Basis of Loan Tenure

 Crop Loan/ Kisan Credit Card (Retail Agriculture Loan): Kisan Credit Card/ Kisan
Card is an ideal agriculture loan option to meet short-term credit requirements, such as
expenses resulting from the cultivation of crops, post-harvest activities, maintenance of
farm equipment, etc. The card is generally available in the form of an electronic Repay
Card, which the farmers can use to draw money from ATMs to make the required
purchase. Thus, it provides convenient credit to meet your daily farm requirements.

 Agriculture Term Loan: This refers to the long-term loans of up to 48 months offered
by various lenders to meet agricultural expenditures that are generally not seasonal in
nature. The loan amount can be used to purchase new machinery or upgrade existing
ones, install solar power, windmills, etc. Banks generally allow repayment tenure of 3 to
4 years for this loan, so that you can pay back the borrowed amount back in monthly/bi-
annual/yearly installments as per the borrower’s convenience.

On The Basis of End Use

 Farm Mechanization Loan: This loan can be used to purchase new machinery, repair/
replace old ones, purchase tractors or harvesters, or any other agricultural equipment.
While some banks provide a general-purpose loan, others have categorized these loans
into different types based on the end-use. For example, the State Bank of India offers
tractor loans, combine harvester loans, and loans for irrigation equipment.
 Solar Pump Set Loan: This agricultural loan is offered for the purchase of a
photovoltaic pumping system for small irrigation projects. It is generally a long-term loan
with a repayment tenure of up to 10 years.
 Loan for Allied Agricultural Activities: This loan is offered to farmers to meet working
capital requirements and long-term investment needs for allied agricultural activities.

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1.12 Documents Required to Apply for the agriculture Loan

Following is the list of documents required by most of the lenders for an agricultural loan:

 2 Passport sized photographs

 Duly Filled Application form
 Kisan Credit Card
 Identity Proof: Voter ID, PAN card, Aadhar Card, Ration card, etc.
 Address Proof: Utility Bills (Electricity/Water Bills), Voter ID, Aadhar Card, etc.

1.13 Providers of Agricultural Loan

Following are some of the major providers of agricultural loan in India:

Name of the Lender Major Types of Agricultural Loans Offered

 Crop Loan
 Kisan Credit Card (KCC)
State Bank of India (SBI)  Drip Irrigation Loan
 Combine Harvester Loan

 Farmer Finance / Agriculture Loan/ Krishi Loan

ICICI Bank
 Long Term Agricultural Loan

 Cent Kisan Tatkal Scheme

 Cent Vermicompost Scheme
Central Bank of India  Cent Solar Water Heater Scheme
 Kisan Credit Card

 Crop Loan
Union Bank  Kisan Credit Card
 Farm Mechanization Loan

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 Kisan Power
 Kisan Mistaya
Axis Bank  Kisan Mitra
 AGPRO Power

 Agri clinic and Agribusiness Centers Scheme

National Bank or Agriculture and  National Livestock Mission
Rural Development (NABARD)  New Agricultural Marketing Infrastructure

1.14 Benefits of Agricultural Loan

 Available with minimal documentation.

 Special Interest rates starting at 7.00% p.a. Maybe lower for specified Government-
backed schemes
 You can repay the loan over flexible repayment tenure.
 Some lenders also offer the unsecured agricultural loans, depending on the applicant’s
profile and the quantum of loan applied for.
 You can use the agricultural loan amount for a variety of agricultural purposes, ranging
from short-term seasonal farm activities to long-term investment in farm machinery.

1.15 Union Budget 2020-2021 Allocation to Agriculture loan

The Finance Minister, Nirmala Sitharaman announced an allocation of Rs. 1.42 crore to the
Ministry of Agriculture and Farmer’s Welfare in the Union Budget of 2020-21.

This amount was earmarked with respect to the following proposals:

 Agricultural credit target of Rs. 15 lakh crore for 2020-21.

 PM KUSUM to cover 20 lakh farmers for standalone solar pumps and further 15 lakh for
grid connected pumps.
 Creation of efficient warehouses on PPP mode with the help of viability gap funding.
 Self Help Groups (SHGs ) run village storage scheme will be launched.

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 e-NWR will be integrated with e-NAM.

 “Kisan Rail” and “Krishi Udaan” will be launched by Indian Railways and Civil
Aviation, respectively to facilitate national cold supply chain for perishables.
 To increase coverage of artificial insemination to 70%.
 Milk processing capacity to be doubled by 2025.
 Fish production target of 200 tones by 2022-23.

1.16 Introduction to Banking:

When you think of a bank, what image comes to mind? A bank is a financial intermediary for the
safeguarding, transferring, exchanging, or lending of money. Banks distribute “money” - the
medium of exchange. A bank is a business and banks sell their services to earn money, and they
need to market and manage those services in a competitive field. Learn more about the
fundamentals of banking.

A bank is a financial institution and a financial intermediary that accepts deposits and channels
those deposits into lending activities, either directly by loaning or indirectly through capital
markets.

A bank may be defined as an institution that accepts deposits, makes loans, pays checks and
provides financial services. A bank is a financial intermediary for the safeguarding, transferring,
exchanging, or lending of money. A primary role of banks is connecting those with funds, such
as investors and depositors, to those seeking funds, such as individuals or businesses needing
loans. A bank is a connection between customers that have capital deficits and customers with
capital surpluses.

Banks distribute the medium of exchange. Banking is a business. Banks sell their services to earn
money, and they must market and manage those services in a competitive field. Banks are
financial intermediaries that safeguard, transfer, exchange, and lend money and like other
businesses that must earn a profit to survive. Understanding this fundamental idea helps you to
understand how banking systems work and helps you understand many modern trends in banking
and finance.

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1.17 Bank

is an industry that handles cash, credit, and other financial transactions. Banks provide a Safe
place to Store extra cash and credit. They offer savings accounts, Certificates of Deposit, and
checking accounts. Banks use these deposits to make loans. These loans include home mortgages,
business loans, and car loans.

A Bank is a financial institution licensed to receive deposits and make loans. Two of the most
common types of banks are commercial/retail and investment banks. Depending on type, a bank
may also provide various financial services ranging from providing safe deposit boxes and
currency exchange to retirement and wealth management.

1.18 Definition

Banking is defined as “Accepting of deposits of money from public for the purpose of Lending or
Investment, repayable on demand or otherwise and withdrawable by cheque, draft, or otherwise”

Banking can be defined as the business activity of accepting and safeguarding money owned by
other individuals and entities, and then lending out this money in order to earn a profit. However,
with the passage of time, the activities covered by banking business have widened and now
various other services are also offered by banks. The banking services these days include issuance
of debit and credit cards, providing safe custody of valuable items, lockers, ATM services and
online transfer of funds across the country / world.

1.19 Objective of Bank

 Business objectives.

 Social objectives.

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 Business objectives

 Making profits.

 Providing services.

 Currency issue.

 Creation of transaction media.

 Receiving deposit.

 Making loan.

 Ensuring safety.

 Investment.

1.20 Social objectives

 Creating savings.

 Capital formation.

 Industrialization.

 Employment.

 Developing living standard.

 Economic development.

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1.21 Features of Banking

 Deals with money

The bank accepts deposits from the public and advancing them as loans to the needy people.
The deposits may be current, fixed saving etc.

 Provide loans

The banks are the institutions that can create credit i.e. creation of additional money for lending
Thus ‘creation of credit is the unique features of banking.

Banks make extra money by providing loans for different Product to the loan. The bank makes the
extra money by lending money to the eligible person at certain rates.Nowadays, banks provide
loans for various requirements such as study loan, car loan, home loan, personal loans, etc.
Different banks provide different loans at different interest rates. You can compare the interest
rates of different banks to get a loan at minimum interest rates

 Middle man

Banks serve as a middle man from the money surplus unit to be money deficit unit. They are
intermediaries, who transfer funds from savers to investors through grants for business,
commerce, education, housing etc.

 Deposits must be withdrawn able:

The deposits are usually withdrawn able on demand. it may be Withdrawn able by cheque, draft
or otherwise.

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Internet Services

Bank is that modern banks are also providing internet services. The development of the internet
and its inclusion in the banking sector has made it even more easy for people to carry out various
transactions.

 Commercial in nature

Since all the banking activities of Commercial banks are carried on with the aim of Making
profit, it is regarded as an commercial institution .

The bank uses our money to lend it to others or by investing it in profitable businesses to make
profits. If you think your money is sitting in a banks locker, then you are wrong.

 Size transformation

Bank Create a reservoir of fund from the numerous small deposits collect from customer ,and
then provide large loan to Investor.

 Nature of agent

Beside the basic function of accepting deposits and lending money as a loan ,bank ,possess the
characteristics of an agent because of its various agency services

1.22 Types of Banking

Banks are further segregated into four types.

Commercial banks: These banks are regulated by Banking Regulation Act, 1949. They accept
the public deposit from the public for lending or investment.

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Cooperative banks: Cooperative banks are undertaken by the State Cooperative Societies Act
and give cheap credit to their members. The rural population is dependent on the cooperative
banks for its financial backup.

Specialized banks: These banks provide financial help to special industries, foreign trade, etc.
Few examples of specialized banks are foreign exchange banks, export and import banks,
development banks, etc.

Central banks: These banks manage, check, and monitor all the activities of the commercial
banks of a country.

1.23 Functions of Commercial Banks

(1) Acceptance of deposits

 Banks provide the loans only based on the amount deposited by the public.
 They lend money and get interested in them.
 They get funds for lending through deposits in current and savings accounts.
 They pay interest on deposits according to the rates decided by RBI.
(2) Lending of funds

 Providing loans to the public is an important function of banks.

 Advances can be made in the form of overdrafts, cash credits, term loans, etc.

(3) Cheque facilities

 Banks provide cheque facilities to the owners of savings and current accounts to
withdraw their money.
 It is the most developed form of credit instrument.
 Banks also encash the cheques drawn on another bank.
 There are two types of cheques.
(a) Bearer cheques that are cashable immediately

(b) Crossed cheques that are to be credited to the payee’s account

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(4) Remittance of funds

 Banks also provide the function of money transfer.

 It provides money transfer facilities through drafts, pays orders, net banking,
NEFT/RTGS, etc., on nominal commission charges.
 A payee can present the cheques in the drawer bank to collect the funds.

1.24 Types of Commercial Banks

(1) Public sector banks

 Public sector banks are those banks in which the major holding is of the government.
 Examples: SBI, PNB, OBC, etc.
(2) Private sector banks

 Private sector banks are those banks that are owned, controlled, and managed by
private promoters.
 They operate according to the market forces.
 Examples: HDFC, ICICI, Kotak Mahindra,

Features Bank

 A Debit Card.
 Online and Mobile Banking.
 Mobile Check Deposit.
 Online Bill Pay.
 Email and Text Alerts.
 Excellent Security.

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1.25 BENEFITS OF BANKING:

Safety: It’s risky to keep your money in cash as it could be lost, stolen, or destroyed. Financial
institutions keep your funds safe.

Convenience: With banks, there's no need to carry cash. If you need cash, you can easily access
your funds virtually anywhere.

Security: Banks follow stringent laws and regulations and at most banks, funds are insured

Financial Future: As an individual, you'll have access to financial professionals to help you.
Knowledgeable advice of bankers is a valuable resource to help you build a better financial
future

1.26 MISSION IN BANK

To provide State-of-the-Art Banking solutions, leveraging technology, aiding Ease of Doing
business and enhancing value for all stakeholders through inclusive growth.

1.27 VISION IN BANK

To emerge as the Best Bank to Bank with by pursuing industry benchmarks in profitability,
operational efficiency, asset quality, risk management and digital innovation.

SERVICES

1.28 Personal Banking

 Savings & Deposits

 Loan Products
 Technology Products
 Mutual Funds
 Insurance Business
 International Services
 Card Services
 Consultancy Services

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 Depository Services
 Ancillary Services
 Approved Housing Projects

1.29 Corporate Banking

 Accounts & Deposits

 Supply Chain
 Loans & Advances
 Syndication Services
 IPO Monitoring Activity
 Merchant Banking
 TUF Schemes
 Canara e-Tax

1.30 OBJECTIVES

 To Identify, Motivate and Train Women Entrepreneurs.

 To Conduct General and Skill Development Programmes (EDPs) for different Target
Groups.


 To Assist Potential Women Entrepreneurs to start/establish/run an Enterprise

professionally.


 To Guide Existing Entrepreneurs in improvisation modernization of an existing unit.



 To co-ordinate with Government/Voluntary organizations engaged in promoting

entrepreneurship among women.


 To offer counselling services to the Entrepreneurs existing as well as prospective.

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 To popularize the concept of Self Help Groups' among women as well assist them in
formation of SHGs, credit linkage and trainings.
1.31 Agriculture loan Bank

One of the largest and oldest public sector banks in India, SBI Bank has a wide variety of loan
schemes to benefit the weaker sections of the society. The bank offers several agriculture loan
schemes to help farmers and others engaged in agriculture and allied activities. Here, in this
guide, you can find the complete list of agriculture loan schemes from Bank.

Bank offers various loan schemes to benefit:

 Individual farmers and agriculturists.

 Corporate firms, NGOs engaged in agriculture and allied activities.

1.32 Agriculture Loan Schemes offered by Bank

1. KCCS (Kisan Credit Card Scheme)
Kisan Credit Card Scheme is one of the most popular agriculture loan schemes in India. SBI
Bank is the pioneer of the Kisan Credit Card Scheme that is now available at several other
banks in the country.

Salient Features of the Scheme:

 It offers single-window credit assistance to farmers for various requirements like:

 To meet short-term credit needs for the cultivation of crops

 Farmer’s household consumption expenses

 Post-harvest expenses

 For investing in sprayers, irrigation sets, pump sets, dairy animals, etc.

 Working capital to maintain farm assets and to carry out crop cultivation

 Eligibility

 All individual farmers, SHGs, Joint Group of farmers, etc.

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 Once approved for the scheme, the farmer will be issued with a loaded Repay debit card that
they can use to pay for their various expenses.

2. Crop Loans

are offered to farmers to meet seasonal requirements like the purchase of seeds, pesticides,
fertilizers, labor charges, irrigation charges, etc.
Salient Features of the Scheme:

 Eligibility – Individual farmers, cultivator, tenant or sharecropper

 Tenure – 9 to 15 months

2. Kisan Suvidha Scheme

Bank offers the Kisan Suvidha Scheme to meet the crop cultivation expenditures, working
capital needs, maintenance expenses, and other credit needs of farmers.

Salient Features of the Scheme:

 Eligibility: Individual farmers and joint borrowers

 Nature of the loan:

o Working capital

o Investment credit

 Tenure of the loan:

o Working capital – 12 to 18 months

o Investment credit – five years in yearly or half-yearly installments

3. Kisan All-Purpose Term Loans

Bank offers all-purpose term loans for farmers. This loan helps farmers borrow credit for
various needs. The usage of the loan amount can include land development, farm mechanization
, horticulture, irrigation and water conservation projects, and other allied activities.

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Salient Features of the Scheme:

 Eligibility: individual farmers, a joint group of farmers, SHGs, etc.

 Quantum of Loan: Depends on the project plan submitted by the borrower. Maximum limit is
Rs. 20 lakhs.

 Tenure: Maximum of 9 years.

4. Farm Development Loan

As the name implies, this loan is offered to farmers to develop their land. Some sanctioned
activities include the construction of tanks/ponds, fencing, laying irrigation channels, land
reclamation, construction of sheds, farm stores, etc.

Salient Features of the Scheme:

 Eligibility: The farmer should be the owner of the land and own a minimum of two acres.

 Repayment period: Ranges from 9 to 15 years

5. Pump set Loans

These loans are offered for the purchase of irrigation pump sets, electrical motors, and other
equipment.

Salient Features of the Scheme:

 Eligibility: To be eligible for this loan, farmers have to obtain a feasibility certificate from the
electricity board, and water rights certificate from the concerning authorities. Additionally,
this loan is available only to farmers who own their land and have an area of at least two
acres.

 Tenure: Maximum of 9 years.

 Repayment: In yearly or half-yearly installments.

6.Dairy Loans
Borrowers can avail dairy loans for the purchase of milch cattle, for the construction of animal
shed, for the purchase of cattle feed and fodder and other dairy-related expenses.
Salient Features of the Scheme:

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 Eligibility – The farmer should have a cattle shed for housing the animals and cultivate green
fodder for the animals. Additionally, there should be adequate drinking water and veterinary
facilities in the area.

6. Drip/Sprinkler Irrigation Loans

As the name implies, this loan is offered for the purchase of drip irrigation equipment like filters,
pressure regulators, drippers, accessories, pipes, and other water-saving modern irrigation
equipment.

Salient Features of the Scheme:

 Eligibility: The borrower should be the owner of the land.

 Tenure: 10 to 15 years in yearly/half-yearly installments.

7.Farm Machinery Loans

This loan is offered to farmers for the purchase of farm machinery like grain threshers, combine
harvester, power tiller, tractor, trailer, ploughs, drills, sprayers, dusters, and other equipment
needed for agriculture.

Salient Features of the Scheme:

 Eligibility: For tractors, the applicant should have a minimum of six acres of perennially
irrigated land or twelve acres of dry land.

 For power tillers and trailers: The applicant should have a minimum of two acres of irrigated
land or four acres of dry land.

 Repayment tenure: 5 to 9 years, in yearly or half-yearly installments.

Loan against Gold Jewelry for Agriculturists

Canara Bank offers gold loans for farmers to meet their various agriculture-related expenditures.

Salient Features of the Scheme:

 The jewels pledged to act as security.

 The lending value is a maximum of 75% of the appraised value of the loan, as per the lending
rate.

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 The repayment tenure is a maximum of 12 months, in monthly/quarterly/half-yearly or lump

sum payment.

1.33 Functions

 Formulation and implementation of policies and programmes aimed at achieving rapid

agricultural growth through optimum utilization of land, water, soil and plant resources of
the State.
 Implementation of beneficiary-oriented schemes for economics upliftment of farming
community.

 Establishing farmer-department coordination in implementing and providing technological

know-how to the farming community through agricultural extension services.

 Undertaking all possible measures to ensure timely and adequate supply of quality inputs
and services such as fertilizers, seeds, pesticides, agricultural implements, etc.

 Creating assured irrigation facilities to the farmers through minor irrigation schemes so as
to obtain maximum returns from their land.

 Popularizing the use of farmer's friendly bio-fertilizers.

 Motivating farmers to minimize the use of pesticides and to control the environmental
pollution with adoption of Integrated Pest Management.

 Motivating farmers for diversification of areas from traditional crops to commercial crops.

 Monitoring soil health and testing of nutrient level of soil samples collected from farmers’
fields across the State.

 Educating farmers on soil and water conservation technologies through implementation of

Watershed Projects.

 Undertaking measures to provide agricultural credit, crop insurance and helps the farmers
in getting remunerative returns for their produce.

 Implementing calamity (like flood, drought etc.) relief programmes.

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CHAPTER-2
RESEARCH DESIGN

2.1 RESEARCH

Research is the careful consideration of study regarding a particular concern or problem using
scientific methods. According to the American sociologist Earl Robert Babbie, “research is a
systematic inquiry to describe, explain, predict, and control the observed phenomenon. It
involves inductive and deductive methods.”

2.2 RESEARCH DESIGN

Research Design refers to the overall strategy that you choose integrate the different components
of the study in a coherent and logical way. Thereby, ensuring you will effectively address the
research problem, it constitutes the blueprint for the collection, measurement and analysis of
data. In this project the activities that go by the name of research mainly a survey research
method that is activities undertaken to refer to the critical & executive investigation of the bank .

2.3 Title of the study:

My study is based on the title “A STUDY ON AGRICULTURE LOAN.”

2.4 OBJECTIVES OF THE STUDY

 To study the agriculture loan in bank.

 To study the borrower level of satisfaction with regards to agriculture loan.
 To examine whether customers prefer agriculture loan.
 To know the customer complacency and analyze the factors and their effect on the
consumers by Agriculture loan.
 To examine major challenges faced by Indian agriculture loan barrower.
 Study the future of Indian.

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2.5 SCOPE OF THE STUDY

The scope of this study is limited to the barrower’s satisfaction, and barrowers expectation as
well as the impact of agricultural loan. The future researchers can focus their studies on
different angles of agricultural loan and its. This research work will covered bank and also
deals with the barrowers which are regulars used to farmers. The study also covered the
quality of the service and how they impact on the barrowers complacency and for instant it
come across with what factor that are accommodate and enhance the satisfaction feeling of
the barrowers on Agricultural loan.

2.6 LIMITATION OF THE STUDY

No research is complete without admitting the limitations that was faced while conducting a
study which will contribute to present learning. This study too like the others have certain
constrains which has been discussed below.
1. The study was restricted to Kanakapura city only.
2. The sample size will be limited to time and resources.
3. This study conducted relating to the agriculture loan , so the result which we gather is
only applicable for the barrower.
4. The response from the sample may be biased, or may contain cooked up from the
respondent another limitation was the relatively short period and within which this research
was carried out.
5. Questionnaires method is used only for data collection and the limitation of the
questionnaire method is applicable to the study.
6. The result is assuming that respondents have given accurate information.

2.7 Method of Collecting Data:

Descriptive Research Design Data Collection:-

The goal for all data collection is to capture quality evidence that then translates to rich data
analysis and allows the building of a convincing and credible answer to questions that have been
posed.

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Sources of Data:-

Sampling Procedure: -

The sample will be collect by random people from Kanakapura. It will be collect through
personal feedback by filling Google forms by formal and informal talks and through filling up
the questionnaire prepared.

Sample Size:-

The sample size of my survey is limited to 50 customers only.

DATA COLLECTION: -

The task of data collection begins after a research problem has been defined and research design
plan chalked out. While deciding about the method of data collection to be used for the study, the
researcher should keep in mind two types of data viz.

• Primary Data

• Secondary Data

PRIMARY DATA:- Primary data are those which are collected afresh and for the first time,
and thus happen to be original in character. It is that data which is not published but very useful.
So the information was collected by discussion held with the executives of accounts & finance
department.

• Observation Method
• Interview Method
• Questionnaires

SECONDARY DATA:-Secondary Data are those which have already been collected by someone
else and which have already been passed through the statistical process. It consists of the information that
already exists or someone has collected it for specific purpose. Secondary data collection work is merely
that of compilation.

Books, Internet , Magazines and Case Study Method

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CHAPTER-3

DATA ANALYSIS AND INTERPRETATION

Introduction

The importance of data interpretation is evident and this is why it needs to be done properly.
Data is very likely to arrive from multiple sources and has a tendency to enter the analysis
process with haphazard ordering. Data analysis tends to be extremely subjective. That is to say,
the nature and goal of interpretation will vary from business to business, likely correlating to the
type of data being analyzed. While there are several types of processes that are implemented
based on individual data nature, the two broadest and most common categories are “quantitative
and qualitative analysis”.

DATA ANALYSIS AND INTERPRETATION

Data interpretation is the process of reviewing data and arriving at relevant conclusions using
various analytical methods. Data analysis assists researchers in categorizing, manipulating, and
summarizing data to answer critical questions. Data analysis aims to bring order and structure to
data by manipulating, summarizing, and reducing it to an interpretable form. It helps to uncover
the patterns in the data. Data interpretation aims to execute and apply processes that assign
meaning to these discovered patterns by analyzing data.

Data interpretation refers to the process of using diverse analytical methods to review data and
arrive at relevant conclusions. The interpretation of data helps researchers to categorize,
manipulate, and summarize the information in order to answer critical questions.

INTERPRETATION:

An interpretation refers to the tasks of drawing inferences from the collected facts after
analytical and experimental

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Table no 3.1: Table showing Age of respondents

Particular Respondents Percentage

21years to 30years 15 30%
31years to 40 years 20 40%
41years to 50 years 10 20%
Above 51years 5 10%
TOTAL 50 100%

ANALYSIS: Out of 50 respondents, 30% respondents are below 21-30 years, 40% respondents
are 31-40 years, 20% respondents are 41-50 years, 10% respondents is above of 51 years

Graph No 3.1: Graph showing Age of respondents

Respondents

21years to 30years

31years to 40
years
41years to 50
years
Above 51years

INTERPRETATION: It can be interpreted that majority of the respondents age is 31-40 is

40% and minority above 51 year at 10%

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Table no 3.2: Table showing Gender of respondents

Particular Respondents Percentage

Male 27 54%
Female 23 46%
TOTAL 50 100%

ANALYSIS: The above of the table showing out of 50 respondents, 27 respondents are male
, 23respondents is female .

Graph No 3.2: Graph showing Gender of respondents

50

40

30

20

10

0
male female tatol

respondendents percentage

INTERPRETATION: It can be interpreted that majority of 54% respondents are male and
minimum of 46% respondents are female.

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Table no 3. 3 : Table showing Marital status of respondents

Particular Respondents Percentage

Married 24 48%

Unmarried 26 51%
TOTAL 50 100%

ANALYSIS: The above of the table showing out of 50 respondents, 24 respondents are
Married ,23respondents is Unmarried .

Graph no 3.3

Chart Title
30

25

20

15

10

0
PARTICULAR MARRIED UN MARRIED
RESPPONSES

Column1 Column2 Column3

INTERPRETATION:

It can interpreted that majority of the respondent is marital status is un married 51% and
minority respondents 49% is Married

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Table no 3. 4 : Table showing Profession

Particular Respondents Percentage

Employee 13 25.5%
Business man 14 27.5%
Professional 7 15.7%
Farmer 16 31.4%

ANALYSIS:

The above of the table showing out of 50 respondents, 13 respondents are employee ,14
respondents are business man ,7 respondents are professional and 16 respondents are farmers
Graph no 3.4

respondents

employee BUSINESS PROFESSIONAL FORMER

INTERPRETATION:

It can be interpreted that majority of 31.4% respondent are farmers and minority of 15.7% are
professional .

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3. 5 : Table showing Incomes of respondents

Particular Respondents percentage

Less than 20000 18 37%
20000-40000 23 46%
60000-80000 9 17%

TOTAL 50 100%

ANALYSIS:

In the above table it shows that out of 50 respondents, 18 respondents are earning less than
20000 ,23 respondents are earning between 20000-40000 and 9 respondents are 60000-80000.

Graph No 3.5

60

50

40

Series1
30
Series2
Series3
20

10

0
Less than 20000 20000-40000 60000-80000 TOTAL

INTERPRETATION:

It can interpreted that majority of the respondent is Income 40% are 20000-40000 and
minority of the respondents 17% are 60000-80000.

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Table no 3. 6 : Table showing Customer Preference towards Banking

Sectors.

Particular Respondents percentage

Public sector bank 60%
30
Private sector bank 20 40%

TOTAL 50 100%

ANALYSIS:

In the above table it shows that out of 50 respondents, 30 respondents are public sectors bank
,20 respondents are private sector bank .

Graph No 3.6

Public sector bank

Private sector bank

INTERPRETATION:

It can be interpreted that majority of 60 % respondents prefer public sector bank as they are
customer friendly and minority of 40% respondents prefer private sector bank.

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Table no 3. 7 : Table showing Attribute of the Bank

Particular Respondents Percentage

Location 10 20%
Technology 15 30%
Trust 13 26%
Quality of service 12 24%
TOTAL 50 100%

ANALYSIS:

The above of the table showing out of 50 respondents, 10 respondents are location ,15
respondents are technology , 13 respondents are trust and 12 respondents are quality of
service .

Graph No 3.7

Respondents

Location
Technology
Trust
Quality of service

INTERPRETATION: It can be interpreted that majority of 30% identifying the technology

as most important attribute because now a days technology is very advance used in all the
sectors. .

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Table no 3. 8 : Table showing Purpose of agriculture loan

Particular Respondents percentage

Dairy loan 13 25%
Crop loan 19 39%
Tractor loan 9 18%
Poultry loan 9 18%
TOTAL 50 100%

ANALYSIS : The above table showing out of 50 respondents, 13 respondents take Dairy
loan ,19 respondents take crop loan , 9 respondents take tractor loan and 9respondents are
poultry loan .

Graph No 3.8

Respondents

Dairy loan
Crop loan
Tractor loan
Poulty loan

INTERPRETATION :It can be interpreted that majority of 39% respondents take crop loan
as the respondents are farmers and grow various crops and minimum of respondents take tractor
and poultry loan as few farmers depends on poultry .

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3.9. Table showing Awareness of Scheme of agriculture loan

Particular Respondents percentage

PMFBY 13 26%

E-NAM 15 30%

PKVY 10 20%

PMKSY 12 24%

TOTAL 50 100%

ANALYSIS: In the above table showing out of 50 respondents, 13 respondents knew PMFBY
,15 respondents aware of E-NAM, 10 respondents knew PKVY and 12respondents aware of
PMKSY .

Graph No 3.9

Respondents

PMFBY E-NAM PKVY PMKSY

INTERPRETATION:

It can interpreted that majority of 30% respondents aware E-NAM AND MINORITY OF 20%
aware of PKVY scheme of agriculture loan.

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3.10. Table showing Type of agriculture loan of taken by respondents

Particular Respondents percentage

Short term loan 19 38%

Line of credit 14 28%

Lease 9 18%

Agriculture grant 8 16%

TOTAL 50 100%

ANALYSIS: The above showing out of 50 respondents, 19 respondents are short term loan
,14 respondents are line of credit , 9 respondents are lease and 8 respondents are agriculture
grant .

Graph No 3.10

Respondents

16%
Short term loan
38%
18% Line of credit
Lease
28%
Agriculture grant

INTERPRETATION: It can interpreted that majority of 38% respondents take short term
loan as they can repay easily and burden is less and minimum of 16% respondents take
agricultural grants as it has less interest rate.

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3.11. Why you are apply loan in bank Respondents

Particular Respondents percentage

Bank is very trustworthy 13 26%

Bank are useful transfer 13 26%

Lower interest rate 17 34%

Easy to take loan 7 14%

TOTAL 50 100%

ANALYSIS: The above of the table showing out of 50 respondents, 13 respondents are
bank is very trustworthy ,13 respondents are bank are useful transfer , 17 respondents are
lower interest rate and 7 respondents are easy to take loan.

Graph No 3.11

Respondents

Easy to take
Bank is very
loan
trustworthy
14% Bank is very trustworthy
26%
Lower interest
Bank are useful transfer
rate Bank are useful
34% transfer Lower interest rate
26% Easy to take loan

INTERPRETATION: It can interpreted that maximum of 34% respondents apply for loan
in bank as the interest rate is very less and they can easily clear it without much burden and
minimum of respondents take loan in bank as it is very easy to take loan in bank.

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3.12. Showing the familierness of agriculture loan

Particular Respondents percentage

Very familiar 22 44%

familiar 18 36%

Unfamiliar 10 20%

TOTAL 50 100%

ANALYSIS: The above of the table showing out of 50 respondents, 22 respondents are
bank is very familiar ,18 respondents are familiar, 10 respondents are un familiar .

Graph No 3.12

Respondents

20%
44% Very familiar
familiar
36%
Unfamiliar

INTERPRETATION: It can interpreted that majority of the respond 44% respondents is

Very familiar in bank and minority of the respondents 20% Unfamiliar in bank.

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3.13. Able to access credit on favorable loan term

Particular Respondents percentage

Strongly agree 22 44%

agree 13 26%

disagree 11 22%

Strongly disagree 4 8%

TOTAL 50 100%

ANALYSIS : The above of the table showing out of 50 respondents, 22 respondents are
strongly agree ,13 respondents are agree, 11 respondents are disagree and 4 respondents are
strongly disagree

Graph No 3.13

Respondents

Strongly
disagree
disagree
Strongly agree

Agree

Strongly agree Agree disagree Strongly disagree

INTERPRETATION: It can interpreted that majority of the respondents 44% respondents

is strongly agree and minority of the respondents 8% respondents is Strongly disagree

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3.14.Sources of Income other than forming

Particular Respondents percentage

Full time employee outside in 20 40%

farm

Part time employee outside in 10 20%

farm

Retirement income 8 16%

Income form personal 12 24%

investments

TOTAL 50 100%

ANALYSIS: The above of the table showing out of 50 respondents, 20 respondents are full
time employee outside ,10 respondents are part time employee , 8 respondents are retirement
income and 12respondents are income form personal investments.

Graph No 3.14

Respondents

Full time employee outside in farm Port time employee outside in farm
Retirement income Income form personal investments

INTERPRETATION: It can interpreted that majority of the respondents40% respondents

is Full time employee outside in farm and minority of the 16% respondents is Retirement
income.

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3.15. Bank interest rate afforded by Bank

Particular Respondents percentage

Lowest Interest rate 33 66%

Highest Interest rate 12 24%

TOTAL 50 100%

ANALYSIS: The above of the table showing out of 50 respondents, 33 respondents are
lowest interest rate ,12 respondents are highest interest.

Graph No 3.15

Chart Title
35
30
25
20
15
10
5
0
Respondents percentage

Lower Higher

INTERPRETATION: It can interpreted that majority of 66% respondents opinion is the interest
rate is lowest and minority of the 24% respondents felt interest rate is high.

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3.16. Forming experiences

Particular Respondents percentage

10 years 15 30%

20 years 13 26%

30years 18 36%

35 years 4 8%

TOTAL 50 100%

ANALYSIS: The above of the table showing out of 50 respondents, 15 respondents are 10
years ,13 respondents are 20 years , 18 respondents are 30 years and 4 respondents are 35
years.

Graph No 3.16

Respondents

10 years 20 years 30years 35 years

INTERPRETATION: It can interpreted that majority of 36% respondents having 30years

of farming experience and minimum of 8% respondents have more than 35 years experience.

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3.17. How many acres of in productions forming

Particular Respondents percentage

5 acres 12 24%

3acres 13 26%

2 acres 15 30%

1 acres 10 20%

TOTAL 50 100%

ANALYSIS: The above of the table showing out of 50 respondents, 12 respondents are 5
acres ,13 respondents are 3 acres, 15 respondents are 2 acres and 10 respondents are 1 acres .

Graph No 3.17

Respondents

5 acres 3 acres 2 acres 1 acres

INTERPRETATION: It can interpreted that majority 30% respondents have land of

2acres and minimum of 20% respondents have 1acre land.

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3.18. Your land in mortgage in the bank

Particular Respondents percentage

YES 30 60%

NO 20 40 %

TOTAL 50 100%

ANALYSIS: The above of the table showing out of 50 respondents, 30respondents are Yes
,16 respondents are No. .

Graph No 3.18

Chart Title
35
30
25
20
15
10
5
0
Respondents percentage

YES NO

INTERPRETATION: from the study it is interpreted that majority of 60% respondents

have mortgaged the land in bank for loan.

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3.19. Forming land is owned or leases.

Particular Respondents percentage

OWNED LAND 37 74%

LEASES LAND 13 26%

TOTAL 50 100%

ANALYSIS: The above of the table showing out of 50 respondents, 37respondents are
owned land ,13respondents are leases land.

Graph No 3.19

40
35
30
25
20
15
10
5
0
Respondents percentage

OWNED LEASES

INTERPRETATION: It can interpreted that majority of 74% respondents land is owned

land.

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3.20. Challenges faced by Indian Agriculture loan borrowers

Particular Respondents percentage

Documentation 25 50%

Interest rate 20 40%

Term of Loan 5 10%

TOTAL 50 100%

ANALYSIS

In the above table out of 50 respondents 25 respondents felt documentation is the problem , 20
respondents felt interest rate is more and 5 respondents term of loan is the problems.

GrapNo3.20
30

25

20

15 Respondents
percentage
10

0
Documentation Interest rate Term of Loan

INTERPRETATION: It can interpreted that majority of 50% respondents felt providing

documents and procedure is difficult and minimum of 10% felt duration of loan repayment is
sometimes less and more and interest increase as the term increases.

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3.21. Do you think bank sector provides all customers needs

Particular Respondents percentage

Agree 28 56%

Disagree 22 44%

TOTAL 50 100%

ANALYSIS

The above of the table showing out of 50 respondents, 28 respondents are Yes ,22
respondents are No.

Graph No 3.21

Chart Title
30

25

20

15

10

0
Respondents percentage

YES NO

INTERPRETATION: It can interpreted that majority of the respondents56% agree that

bank satisfy the needs of the customers and minimum of 44% respondents disagree that the bank
does not satisfy all the requirements of the customers.

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3.22. Which of the following give more importance in the bank

Particular Respondents percentage

ATM facility 25 50%

Over draft 12 24%

Loan facility 13 26%

TOTAL 50 100%

ANALYSIS

The above of the table showing out of 50 respondents, 25respondents are ATM facility ,12
respondents are over draft, 12 respondents are loan facility.

Graph No 3.22

30

25

20

15

10

0
ATM facility Over drott Loan facility

Respondents percentage

INTERPRETATION: It can interpreted that majority of the respondents 50% respondents

is ATM facility and minority of the respondents 24% respondents Over draft .

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3.23. Whether the Loan Application is Complete or not ?

PARTICULAR RESPONDENTS PERCENTAGE

25 50%
YES
12 24%
NO

COMPLICATED 13 26%

ANALYSIS: The above of the table showing out of 50 respondents, 25 respondents are Yes
and 12 respondents are No and 13 respondents felt complication.

Graph No 3.23

Respondents

YES NO Complicated

INTERPRETATION : It can interpreted that majority of 50% applications are completed

and minimum of 24% respondents application is incomplete as they fail to provide proper
documents.

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Chater-4

FINDINGS, SUGGESTION, CONCLUSION

4.1 FINDINGS:

 Many farmers are borrowing loan for agriculture loan for growing crops
 Farmers are less aware about the other financial product related to the agriculture loan
 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
 In general observation found that many are intentionally avoid repayment of loan
 If more than one agency lends money for the same purpose at the same time there is an
overlapping of credit to borrow
 Respondents face various challenges like repayment of loan, high interest rate, duration
of loan etc.
 Majority of respondents are satisfied with the agricultural loan in the bank.
 It is also found that customers prefer to take agriculture loan from bank.

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4.2 SUGGESTIONS:-

 Bank offers also have to increase the contacts with farmers. Encourage the people by
conducting some programmers related to the agriculture scheme how it is useful in remote areas.
So, it creates awareness in the farmers.

 Bank have to focus on enhancing the quality of some new scheme 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.

So the, bank have so take some efforts to create awareness about different financial product by
taking some programmer and bank officers have play a proactive role in aggressive marketing of
short term and investment credit to potential borrowers.

 People of young age group who are risk takes by nature may be targeted separately. At present
area they are taking the decision related each and activity in the family. So, the offers have to
target the younger’s age group.

 Some farmers are capable to repay the loan but they intentionally avoid to repay the loan. In
which the government & bank recovery policy should tighten-up . after recovery of the funds can
utilized for various purpose

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4.3 CONCLUSION:-

The project is executed by considering the financial year 2019-2020 as base year. The bank is
expected to have good financial position in future as it expected to have more customer for
agriculture loan. Various facilities are provided to farmer’s. relation between the branch officers
& the farmers are very good. In loan scheme many farmers also get subsidy for plantation. 50%
of the total cost for drip croup . Bank provides many agricultures financial assistance other than
agriculture loan like consumer loan, vehicle loan, housing loan, cold storage, import-export
finance which are useful for growth and development of agriculture and it helps to flourishing
agriculture sector and its allied activities. Bank also creates awareness about agriculture loan
through different medium.

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Bibliography :-

Books “Inclusive Growth in India: Agriculture,

Poverty and Human Development, Oxford University Press,

2008 “Biotechnology in Indian Agriculture: Potential, Performance and Concerns”

Academic Foundation, 2010 (Jointly with N. Chandrasekhar Rao) “India:

Perspectives on Equitable Development”, Academic Foundation, 2008 (Edited jointly with N.

Chandrasekhar Rao)

“Human Development in Andhra Pradesh: Experiences, Issues and Challenges”,

Wed site

https://www.researchgate.net/publication/356357075_An_Overview_of_Agricultur
e_Finance_in_India/download

https://www.unionbankofindia.co.in/userfiles/agriculture%20loan%20%20-%20crop%20loan-
annex-a%20%20annex-
c(3).dochttps://www.researchgate.net/publication/332401092_FARMING_FUTURES_AN_

https://sbi.co.in/web/agri-rural/agriculture-banking/crop-loan
https://agricoop.nic.in/en
https://www.india.gov.in/topics/agriculture

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ANNEXTURE

QUESTINNAIRES OF AGRICULTURE LOAN

1. NANE

2. AGE

1) 21 -30 2)31-40yers

3)41- 50 4)50 Above years

3. Gender

1) Male 2)Female

4 .Marital Status

1) Married 2) Unmarried

5 . Profession

1) Employee 2) business man

3) Professional 4) former

6. Income

1) Less than20000 2) 20000-40000

3)60000-80000

7 .Customer preference towards banking sector

1) public sector bank 2) private sector bank

8. Attribute of the bank

1) Location 2) technology
2) Trust 4) Quality of service

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9. Purpose of agriculture loan

1) Dairy loan 2)crop loan

3) Tractor loan 4) Poultry loan

3) land purchasing 4) expansion land

9. Scheme of agriculture loan

1) PMFBY 2) E-NAM

3) PKVY 4) PMKSY

10. What typed agriculture loan

1) Short term loan 2) line of credit

3) Lease 4) agriculture grant

11. why you are apply loan in bank

1) Bank is very trustworthy 2) bank are useful transfer cash

3) Lowest interest rate 4) Easy to take loan

12. Showing the familierness of agriculture loan

1) Very familiar 2)familiar

3) Unfamiliar

13. Whether the Loan Application is Complete or not 13.

1) Yes 2)NO 3) Complicated

14. Able to access credit on favorable loan term

1) Strongly agree 2) agree

3) Disagree 4) strongly disagree

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17. Sources of income other than forming

1) Full time employee outside the farm 2 ) Part time outside the farm

3) Retirement income 4) income from personal investment

18. bank interest rate afforded by Bank

1)l lowest interest rate 2) highest interest rate

19. Forming experiences

1)10y 2)20y

3)30y 4)35y

20. How Many acres of in production former

1) 5 acres 2) 3 acres

3)2 acres 4) 1 acres

21. Land in mortgage in the bank

1) YES 2) NO

22. Former land owned or lease

1) Owned 2) leases

23. Do you think bank sector provides all customers needs

1) Agree 2) disagree

24. Do you think bank sector all your banking needs provide

1)Yes 2) No

25. Which of the fo0llowing is given more importance your̥ bank

1) ATM facility 2)over draft 3) loan facility

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