CONTENTS

1. Introduction to the topic

 Company Profile

 Scope of the study

 Objectives

 Hypothesis statement

2. Research Methodology:

 Research design,

 Sampling design,

 Sampling method,

 Sample size,

 Data collection methods

3. Analysis & Findings

4. Hypothesis Testing

5. Conclusions & Suggestions

6. Limitations

7. Bibliography

8. Annexure

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2|Page
INTRODUCTION

PRIMARY MONEY LENDING CREDIT CO-OPERATIVE SOCIETY

plays an important role in safeguarding the weak and unorganized sections of the
people engaged in various economic activities. It has helped in preventing
exploitation from capitalists and in raising economic standards of small farmers,
artisans, landless laborer etc. It has also helped in generating new employment
opportunities and enhancing the competitive ability of the poor section of the
society.
Main Features of Primary credit societies
1. Assessment of credit needs.
2. Disbursement of credit to members.
3. Recovery of credit.
4. Promotion of economic interest of members.

Co-operative Movement has been recognized as an effective instrument for

the economic development of the rural masses and for improvement in the socio-
economic condition of the underprivileged. Since majority of the population of
Maharashtra lives in the rural areas and is involved in agricultural activity, the co-
operative movement here assumes greater significance. Today we find that co-
operatives are found in almost all the areas of Maharashtra and have been vastly
successful in the overall improvement of the quality of life in the rural areas. This
is a success of not only the people of Maharashtra but also of the cooperative
movement itself.

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 Maharashtra is the second largest state in India both in terms of population
and geographical area (3.08 lakh sq.km.). The State has a population of 11.24 crore
(Census 2011) which in 9.3 per cent of the total population of India. The State is
highly urbanized with 45.2 per cent people residing in urban areas.

The State has 36 districts which are divided into six revenue division’s viz.
Konkan, Pune, Nashik, Aurangabad, Amravati and Nagpur for administrative
purposes. The State has a long tradition of having statutory bodies for planning at
the district level. For local self-government in rural areas, there are 33 Zilla
Parishads, 351 Panchayat Samitis and 27,906 Gram Panchayats. The urban areas
are governed through 26 Muncipal Corporations, 219 Municipal Councils, 7 Nagar
Panchayats and 7 Cantonment Boards.

Sr. Name of the Name of the Districts in the various Division. Total
No. Division Districts

Aurangabad Aurangabad, Beed, Hingoli, Jalna, Latur, 08

1 Division Nanded, Osmanabad and Parbhani,

2 Amravati Akola, Amravati, Buldhana, Washim and 05

Division Yavatmal

3 Konkan Mumbai City, Mumbai Suburban, Raigad, 07

Division Ratnagiri, Sindhudurg and Thane

4 Nashik Division Ahmednagar, Dhule, Jalgaon, Nandurbar and 05

Nashik

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5 Nagpur Bhandara, Chandrapur, Gadchiroli, Gondiya, 06
Division Nagpur and Wardha

6 Pune Division Kolhapur, Pune, Sangli, Satara and 05

Solapur

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Co-operative credit System in Maharashtra
Maharashtra has all along been a leader in cooperative movement.
Cooperative has become a way of life for people in the State. Almost 50% of the
State’s population is connected to 1.78 lakh cooperative societies, covering
different aspects of people’s day to day life. We have about 20,000 primary
agriculture credit cooperative societies and 31 district central cooperative banks.
As against six villages covered by the society in the country, we in Maharashtra
have one society for two villages. More than 10 million farmers are members of
the primary societies. The cooperative credit system in the State accounts for 65%
of the credit disbursements for agriculture as compared to 35% at national level.
That is why, the State needs to ensure that the cooperative credit institutions
remain vibrant and work in a professional and competitive environment.

The cooperative credit structure in Maharashtra will grow at much faster rate
once faced with competitive forces and will help serve our population better.

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ADVANTAGE AND DISADVANTAGE

Advantages of Cooperative Societies

The following are some of the important advantages of co-operative societies.

1. Voluntary organization
The membership of a cooperative society is open to all. Any person with common
interest can become a member. The membership fee is kept low so that everyone
would be able to join and benefit from cooperative societies. At the same time, any
member who wants to leave the society is free to do so. There are no entry or exit
barriers.

2. Ease of formation
Cooperatives can be formed much easily when compared to a company. Any 10
members who have attained majority can join together for forming a cooperative
society by observing simple legal formalities.

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3. Limited liability
The liability of the members in a cooperative society is limited to the extent of
their capital contribution. They cannot be personally held liable for the debts of the
society.

4. Government support
The government with a view to promote the growth of cooperative societies
extends all support to them. It provides loans at cheap interest rates, provides
subsidies etc.

5. Low taxes
To promote the co-operative movement and also because of the fact that it is a non-
profit enterprise, government provides various exemptions and tax concessions.

6. Rural credit
Co-operative societies have contributed significantly in freeing villagers from
money lenders. Earlier, money lenders used to charge high rates of interest and the
earnings of the villagers were spent on payment on interest alone.

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Disadvantages of cooperative societies

The following are some of the disadvantages of Cooperative societies.

1. Limited funds
Co-operative societies have limited membership and are promoted by the weaker
sections. The membership fees collected is low. Therefore the funds available with
the co-operatives are limited. The principle of one-man one-vote and limited
dividends also reduce the enthusiasm of members. They cannot expand their
activities beyond a particular level because of the limited financial resources.

2. Over reliance on government funds

Co-operative societies are not able to raise their own resources. Their sources of
financing are limited and they depend on government funds. The funding and the
amount of funds that would be released by the government are uncertain. Therefore
co-operatives are not able to plan their activities in the right manner.

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3. Benefit to rural rich
Co-operatives have benefited the rural rich and not the rural poor. The rich people
elect themselves to the managing committee and manage the affairs of the co-
operatives for their own benefit.

4. Inadequate rural credit

Co-operative societies give loans only for productive purposes and not for personal
or family expenses. Therefore the rural poor continue to depend on the money
lenders for meeting expenses of marriage, medical care, social commitments etc.
Co-operatives have not been successful in freeing the rural poor from the clutches
of the money lenders.

5. Lack of managerial skills

Co-operative societies are managed by the managing committee elected by its
members. The members of the managing committee may not have the required
qualification, skill or experience. Since it has limited financial resources, its ability
to compensate its employees is also limited. Therefore it cannot employ the best
talent.

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Credit facilities provided by credit cooperative
societies to farmers in Maharashtra.

Short and medium term set-ups constitute the credit cooperative structure
in Maharashtra.

 A 3-tier system is central to the structure of both the short term and the

medium term credit cooperatives. This 3-tire system consists of a

1. Co-operative apex bank at the state level,

2. Central Co-operative banks at the district level and

3. Primary Agricultural Co-operative Credit Societies (PACS) at the

village level.

 The three-tier set-up is not only meeting the credit requirements of the

farmers for seasonal agricultural operations (crop loans) but also

investing on farm assets that do not entail huge capital outlay.

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  The primary money lending credit cooperative societies disbursed
laon for crop production and for modernization of agriculture,
improved agriculture practices, modem technologies, animal
husbandry activities and other secondary occupational activities.

Although there has been substantial increase in the membership of credit

cooperatives in the state of Maharashtra, the trend over the last two decades in
terms of cooperative finances is not very encouraging in this state, especially in
more recent times.

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The policies available for crop production in Maharashtra

 Provide credit to the farmers, distribute inputs like fertilizers and also run
outlets under Public Distribution System.
 Provide short term and medium term credit for agriculture and allied activities.
 The short term loans are repayable within a period of 12 to 15 months and the
medium term loans are repayable within 3 to 5 years.
 Crop loan is the prominent item of credit to the farmers by Primary Agricultural
Cooperative Credit Societies, provided without collateral security upto 10 acres
in respect of registered sugarcane growers and upto Rs.1 lakh in respect of other
crops.
 The loan amount exceeding this limit is secured with mortgage of property or
pledge of jewels.
 Primary Agricultural Cooperative Credit Societies also issue loans for other
agricultural purposes like purchase of farm machineries and for non-agricultural
purposes including loans for the purchase of consumer durables, housing loans,
education loans and professional loans.
 To provide marketing facilities for the sale of agricultural produce.
 To associate itself with economic and social welfare programs of the village.

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Crop loan facility of primary credit societies for farmers in
Maharashtra

In Maharashtra farmers are getting crop loan facility from National Bank for
Agriculture and Rural Development (NABARD) which provide loan through
primary credit societies to the farmers. The loan amount is interest free for a period
of financial year between April to March end and after that farmers have to pay
interest to the financial institution at a certain rate.

The Kisan Credit Card (KCC) scheme is a credit scheme introduced in

August 1998 by Indian banks. This model scheme was prepared by the National
Bank for Agriculture and Rural Development (NABARD) on the recommendations
of R.V.GUPTA committee to provide term loans and agricultural needs.

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OBJECTIVE

The measure objective behind the study is to know CONRIBUTION OF

PRIMARY MONEY LENDING CREDIT CO-OPERATIVE SOCIETY FOR
FARMERS IN MAHARASHTRA.

 To study credit facilities provided by credit cooperative societies to

farmers in Maharashtra.

 Study the policies available for crop production in Maharashtra.

 To know crop loan facility of primary credit societies for farmers in

Maharashtra.

 To know response of the farmers getting services from primary

money lending credit cooperative societies in Gondia.

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HYPOTHESIS

 Over dues of most of the Primary Money Lending Credit Cooperative

Society has increase in Maharashtra.
 There is more scope for farmers to get crop loans in Maharashtra due
to cooperative societies..

 Primary Money Lending Credit Cooperative Societies are contributing

more in the development of agriculture in Maharashtra.

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 SCOPE OF THE STUDY

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 SCOPE OF THE STUDY

• Scope of the study is limited in Gondia region.

• The scope of the study is limited in time constraint.

• The scope of study is limited in money constraint.

• Sample size 30 respondent.

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RESEARCH METHODOLOGY

The methodology that was adopted for the study includes both primary source data
as well as the secondary source of data. The data has been collected from 40
consumer in gondia city by applying convenient sampling technique .secondary
data for the study have been collected from various publications in journals ,
magazines , website and books stastical tool such as percentage analysis Chi -
square analysis and weighted score analysis have been used to analyzed the data.

DATA COLLECTION

Data collection refers to a purpose gathering of information relevant to the subject

matter under study and methods depend mainly on nature, purpose and scope of
the enquiry to be undertaken on the available resources and time.

Data collection is one of the methods of research. There are mainly two
methods of the data collection.
 PRIMARY DATA COLLECTION
 SECONDARY DATA COLLECTION

PRIMARY DATA:

The primary data are those which are collected afresh and for the first time, and
thus happens to be original in character. We can obtain primary data either through
observation or through direct communication with respondents in one form or
another or through personal interview.

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SECONDARY DATA:

Secondary data means data that are already available i.e. they refer to the data
which have been already been collected and analyzed by someone else. When the
researcher utilizes secondary data, then he has to look into various sources from
where he can obtain them.

 Internet
 Company manuals and booklets
 Books etc.

The source of information is generally classified as primary and secondary .

According to pay line V. young the source of information can be classified
into documentary sources and field sources.

• Primary data :-

The information given/ collected by individual or groups constitute

primary source.

Methods of generating primary data

i. Survey
ii. Personal interview
iii. Observation
iv. Questionnaire
b) Secondary data :-

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Books, diary, manuscript, letter, magazine, internet etc. are the secondary or
documentary source. The researcher for this dissertation has decided to use
primary source as questionnaire and secondary sources as books and internet for
data collection.

Tools Of Data Collection:

a) Questionnaire and observation was used as tool for primary source of data
collection.
b) Books and internet was used as tool for secondary source of data collection.

Pre-study:

After careful study of literature and expert consultation the researcher still may
have only a rather vague idea about the critical element in his problem. As pilot
study sometimes may be launched as a step preliminary to the form scale before
original study are carried out in order to gain some preliminary information of the
main project.

Pretesting:-

Pretesting is the process of an advance testing of study design after the interview
schedule has been prepared. The researcher referred books and internet to get
prepared literature for this project and report.

Processing:-

Once the collection of data is over the main step top arranged for processing and
analysis of data.

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Editing:-

The preparation of the data forms for the tabulations must include on operational
procedure for accepting, modifying or resection individual questionnaire.

Tabulation:-

Tabulation is a process of summarizing raw and display it in compact forms for

further analysis. Analysis of data is made possible through tables. These tables sre
made for different variables and to show relationship with each other.

Interpretation of data:-

Analysis and interpretation are central step in research process. The goal of
analysis is to summarize collected data in such a way that they provide answer to
the and triggered the researcher. Interpretation is the research for the broader
meaning of research finding.

SAMPLE TECNIQUES: Non probability sampling

SAMLE UNIT: Farmers

SAMPLE SIZE: 30 customers

METHOD: Direct interview through questionnaire

DATA ANALYIS METOD: Charts and graphics

AREA OF SURVEY: Gondia

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 DATA ANALYSIS AND INTERPRETATION

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 1. Age Group of Farmers.

20-30 Years 0
30-40 Years 7
40-50 Years 24
50 Years and above 29

12%

20-30 Years
48%
30-40 Years
40-50 Years
40% 50 Years and above

INTERPREATION

The total respondents are 60. Out of which no one is in 20-30 age group, 12% in
30-40 age group and most of the respondents are in 50 and above age group.

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 2. Education Level of Farmers In Gondia

Response No. Of Respondents

Illiterate 18
Primary 29
Secondary 13
Graduate 0

Education
0%

21.67%
30%
Illiterate
Primary
Secondary
Graduate

48%

INTERPREATION

From the all 60 selected farmer respondent 30% are illiterate, 48% taken primary
education, 21.67% has taken secondary education and 0% are Gradate. Maximum
numbers of farmers have taken primary education.

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3. Linking of farmers with Primary Money Lending Credit Co-Operative
Society.

Response No. Of Respondents

Yes 59
No 1

linking
120.00%

100.00%

80.00%

60.00%
linking
40.00%

20.00%

0.00%
Yes No

Interpretation
Out of 60 farmers 59 farmers are linked with Primary Money Lending Credit Co-
Operative Society for getting services.

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4. Purpose Of Farmers Why They Linked And Connect With Primary Money
Lending Credit Co-Operative Society.

Response No. Of Respondents

Saving Account 11
Crop Loan 34
Govt. Facilities 12
Other Purpose 3

Purpose of linking
60.00%

50.00%

40.00%

30.00%
Purpose of linking

20.00%

10.00%

0.00%
Saving Account Crop Loan Govt. Facilities Other Purpose

Interpretation
Out of the 60 farmers 11 farmers linked with primary Money Lending Credit Co-
Operative Society for saving account,34 for getting crop loan, 12 for govt. facilities
and 3 for other purpose.

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5. Farmers Taken Kisan Credit Card.

Response No. Of Respondents

Yes 52
No 8

Kisan Credit Card

100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
Kisan Credit Card
40.00%
30.00%
20.00%
10.00%
0.00%
Yes No

Interpretation
52 farmers have taken Kisan Credit Card out of the 60 and other 8 people don’t
have any Kisan Kredit Card.

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6. If yes, From Where Farmers Have Taken Kisan Credit Card .

Response No. Of Respondents

Primary Money Lending Credit Co- 55
Operative Society
Nationalized Bank 5
Private Bank 0

Source of KCC
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00% Source of KCC
30.00%
20.00%
10.00%
0.00%
Primary Money Lending Nationalized Bank Private Bank
Credit Co-Operative
Society

Interpretation
Most of the farmers have taken kisan credit card from the Primary Money Lending
Credit Co-Operative Society. Out of the 60 farmers 55 have taken from it and other
5 from the Nationalized bank.

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7. Best Services Of Primary Money Lending Credit Co-Operative Society
According to the Farmers.

Response No. Of Respondents

Crop Loan 25

Saving accounts 16

Credit Facility 11

Don’t Know 8

Best Services
45.00%

40.00%

35.00%

30.00%

25.00%

20.00% Best Services

15.00%

10.00%

5.00%

0.00%
Crop Loan Saving accounts CreditFacility Don’t Know

Interpretation
Out of the 60 farmers 25 farmers think that crop loan is best facility of Primary
Money Lending Credit Co-Operative Society, 16 farmers think saving accounts, 11
farmers think credit facility and other 8 said that they don’t know.

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8. Farmers Taken Crop Loan From Any Primary Money Lending Credit
Co-Operative Society.

Response No. Of Respondents

Yes 43
No 07

Crop Loan
80.00%

70.00%

60.00%

50.00%

40.00%
Crop Loan
30.00%

20.00%

10.00%

0.00%
Yes No

Interpretation
43 framers have taken crop loan from the Primary Money Lending Credit Co-
Operative Society out 60 farmers.

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9. Loan Amount Disbursed To Farmers?

Response No. Of Respondents

Below 20,000 12

20,000 – 40,000 8

40,000 – 60,000 26

60,000 Above 14

Crop Loan Amount

50%
45%
40%
35%
30%
25%
Crop Loan Amount
20%
15%
10%
5%
0%
Below 20,000 20,000 – 40,000 40,000 – 60,000 60,000 Above

Interpretation
Most of the famers have disbursed Crop loan amount between 40000 to 60000
which is 43.33% of total respondent farmers.

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10. Awareness Of Government Plans, Facilities And Policies Available
For Crop Production in Farmers.

Response No. Of Respondents

Yes 11
No 26
Don’t Know 23

Awareness
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
Awareness
20.00%
15.00%
10.00%
5.00%
0.00%
Yes No Don’t Know

Interpretation
Only 11 respondents out of 60 are aware about the available policies related to
crop production.

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11. Source of Crop Loan

Response No. Of Respondents

Primary Money Lending Credit 60
Cooperative Society
Nationalized Bank 0
Private Bank 0

SOURCE OF CROP LOAN

120

100

80

60

40 SOURCE OF CROP LOAN

20

0
Primary Money Nationalized Bank Private Bank
Lending Credit
Cooperative
Society

Interpretation
Out of the total numbers of respondents everyone ticked to the first option that is
Primary Money Lending Credit Cooperative Society.

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FINDINGS
1) It was found that from the sample size of 60 respondents farmer
90% are linked with Primary Money Lending Credit Cooperative
Society.
2) It was found that most of the farmers connected with Primary Money
Lending Credit Cooperative Society for the requirement of crop loan.
3) It was found that 86% respondents have taken kisan credit card out of 60
respondents. And from them about 91% of respondents have taken kisan
credit card from Primary Money Lending Credit Cooperative Society.
4) It founded that 40% of respondents think that crop loan is very helpful for
them to develop their farming.
5) It was found that 71% respondents have taken crop loan from Primary
Money Lending Credit Cooperative Society for paying their agriculture
needs.
6) It was found that 43% of respondent farmers got loan amount disbursed
between 40000-60000 and they said that it is sufficient amount for the
requirements.
7) It was found that only 18% respondents know about the policies
and facilities available for the crop production.
8) All of the respondent farmers think that Primary Money Lending
Credit Cooperative Society is a good source of crop loan t them.
9) About 78% respondents said that Primary Money Lending Credit
Cooperative Society is beneficial for them.

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 10) It was found that 60% of respondents satisfied with the services and
contribution of Primary Money Lending Credit Cooperative Society to
farmers.
11) It was found that most of the farmers transacting with Primary Money
Lending Credit Cooperative Society for crop loan and savings accounts.

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HYPOTHESIS TESTING
H1:- Accepted
Over dues of most of the PRIMARY CREDIT SOCIETIES has increase in
Maharashtra because of losses in crop production to the farmers and some of the
farmers are not repaying the loan amount because they wait for the loan waiver by
Maharashtra government.
H2:- Accepted
There is more scope for farmers to get crop loans in Maharashtra due to
cooperative societies. As the number of cooperative societies in Maharashtra is
large this helps farmers to get crop loan. Societies are providing all the required
information and facilities to farmers.
H3:- Accepted
Primary Money Lending Credit Cooperative Societies contributing by providing
loans and other benefit to the farmers in the agriculture development.

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CONCLUSION

The study was started to analysis of contribution of primary money lending

credit co-operative society for farmers in maharashtra
The project has been done on the contribution towards the
agriculture in Maharashtra. The analysis was done based on the
information collected in the form of questionnaire from the farmers. This
has been done with the help of farmers in Gondia.
The major part of the analysis is based upon the percentage
analysis. After a brief analysis few findings were derived. Based on
findings the suggestions and the conclusion were made.

Thus the report says that the primary money lending credit co-operative
society contributing and helping the farmers by providing them financial help, crop
loans and workin as middle man between the farmers and the Maharashtra
government.

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 SUGGESTIONS

 Primary Money Lending Credit Cooperative Societies contribute in the

welfare of the farmers which can help in increase standard of living of
farmers.

 As crop loan is important thing in development of agriculture Primary

Money Lending Credit Cooperative Societies should follow an easy
administration and documentation procedure for giving crop loan to the
farmers.

 Primary Money Lending Credit Cooperative Societies can provide more

financial help in purchasing necessary equipments required for farming.

 Co operative societies should provide maximum facilities to the farmers

as the most of the members are farmers.

 Farmers must have taken the responsibilities of loan repayment on time.

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LIMITATION OF THE STUDY

 Primary data for the study only taken from questionnaires and it is limited to
the farmers of a selected area in Gondia.
 Some of the respondents were not supporting to give answers.
 Most of the data taken for the study is from secondary data only.

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BIBLIOGRAPHY

1. Website:
www.shodhganga.com
https://en.wikipedia.org
2. Books: Finance Management
3. Internet

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 Annexure

Farmer’s Details:

Name of the Farmer:

_______________________________________________

Place: ___________________Land Owned: ___________________ Acres

1. Age
20-30 Years 30-40 Years 40-50 Years 50 And Above

2. Education

Illiterate Primary Secondary Graduate

3. Have You Linked With Any Primary Money Lending Credit Co-Operative
Society?

Yes No
4. For What Purpose You Linked And Connect With Primary Money
Lending Credit Co-Operative Society?

Saving Account Crop Loan Govt. Subsidy Other Purpose

5. Have You Taken Kisan Credit Card?

Yes No

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6. From Where You Have Taken Kisan Credit Card?
Primary Money Lending Credit Co-Operative Society
Nationalized Bank
Private Bank
7. Which Of The Following Services Best Of Primary Money Lending
Credit Co-Operative Society?
Crop Loan

Saving accounts

Credit Facility

Don’t Know

8. Are You Taken Crop Loan From Any Primary Money Lending Credit
Co-Operative Society?

Yes No

9. How Much Amount Of Loan Is Disbursed To You?

Below 20,000

40,000 – 60,000

20,000 – 40,000

60,000 Above

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