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1) Agriculture
Agriculture is most important enterprise in India. It is a very broad term comprising all
aspect of production .It provides food for population ,fodder for livestock & fulfills needs like
fiber, Fuel, timbre, wood & Raw Material to various industries.
Agril : Soil.
Culture: Cultivation.
2) Agricultural Finance
The funds are required for the agriculture & for its allied activities. It provides financial
assistance to various purposes or agriculture operation for short & medium periods like minor
Irrigation, Land Development, soil conservation, Farm mechanization, Plantation &
Horticulture , cold Storage & other Allied activities.
~1~
2/3rd population depends on agriculture. Low growth in agriculture output results in rise in
food prices. Majority of the poor are farmers, a labour & casual labour therefore for reduction
ultimately & elimination of poverty. Agriculture has a significant share in GDP . If GDP is low
then overall GDP is fall down.
5) AGRICULTURAL FINANCE
Since independence India has made substantial progress in respect of agricultural finance.
The reports of all India Rural Credit Survey Committee and All India Rural Credit Review Show
That farmers were entirely dependent sources of credit. Money Enders is main sources of credit.
They were most convenient and easiest source. His administration as simple and flexible. The
Indian government launched the three-tier banking structure in India. At the apex is NABARD at
the middle level are the urban co-operative banks (UCBS) and a few public sector banks (PSBS);
and at the base are Primary Agriculture credit societies (PACS).
NABARD
UCBS, PSBS
PACS
~2~
Agriculture
Agriculture is the backbone of the indian economy. It is the largest industry of the contry.in
India 70% of workforce still engaged in Agriculture & allied activities. At present (1990-91)
Agriculture is the main source of supply & support for Indian transport.
The Agriculture is the main source of raw material for leading industries. it is largely standes
for prosperity of our country. the agriculture gone through the various stages like Green, White,
and Yellow Revolution to floriculture. The drastic change take place from independence to today.
Role of Agriculture in India
A Flourishing Agriculture sector is far more important for the development of the Indian
economy.
Since farming is less a business than a tradition in India. Even at this stage about 80%
population lives in rural areas & directly or indirectly depends on Agriculture for its live
hood
About 85 crores of persons which are further multiplying at the rate of 2.5% per annum
depends on Agriculture sector.
~3~
Most of our traditional industries depends on the our bulk or foreign earnings draw their
raw material from this sector.
The surplus generated by this sector would help Indian economy to reach the Golden
Stage
The share of Agriculture in national income plays crucial indicator in the economic
development of country.
It supplies the necessities of life today Agriculture is feeding about 100 million people.
Food production crossed mark of 200 millions tones in 1999-2000.
Agriculture has a greater role in economic development in the less developed countries as
it provides livelihood to a vast majority of people living in the country.
Agriculture exports constitute a major portion of Indias exports & accounted for 50% of
the export at present.
~4~
INDUSTRY PROFILE
Modern banking as evolved in England was introduced by the English during their rule in India.
Naturally, todays Indian banking is similar to the British banking. It is not mean that it is
unknown for the India. The Essence of banking is lending for productive purposes. in fact India
was a major partner in the international trading and was a big producer of steel,cloths,rices and
luxurious articles .
There are references to rate of interest security of loans in the Manusmrity.kautilya inthe ARTHA
SHASTRA mentions rate of interest, security deposits and discounting of bills. they were called
Hundises . The y were called Hundies. The big merchants ,traders and moneylenders called
nagarseths occupied important position in Mughal and maratha courts. They had efficient courier
system, extensive branches all over India.
.However, the British introduced modern banking with its double entry principle and
mobilization. Banking business is mainly linked with to lending.
STAGES
Agency houses.
Presidency Banks.
Imperial banks.
~5~
The Indian banking sector has emerged as one of the strongest drivers of Indias economic
growth. The Indian banking industry (US$ 1.22 trillion) has made outstanding advancement in
last few years, even during the times when the rest of the world was struggling with financial
meltdown. India's economic development and financial sector liberalization have led to a
transformation of the Indian banking sector over the past two decades. Today Indian Banking is
at the crossroads of an invisible revolution. The sector has undergone significant developments
and investments in the recent past. Most of banks provide various services such as Mobile
banking, SMS Banking, Net banking and ATMs to their clients.
Indian banks, the dominant financial intermediaries in India, have made high-quality progress
over the last five years, as is evident from several factors, including annual credit growth,
profitability, and trend in gross non-performing assets (NPAs). While annual rate of credit
growth clocked 23% during the last five years, profitability (average Return on Net Worth) was
maintained at around 15% during the same period, while gross NPAs fell from 3.3% as on March
31, 2006 to 2.3% as on March 31, 2011.
The Indian banking sector is a mixture of public, private and foreign ownerships. The below
table highlights top 10 banks which contributed 58% share of the total credit as on March 31,
2011. The State bank of India has recorded highest market share. The Net Interest Margin of
HDFC Banks is 4.2% which is highest among others.
The Credit off-take has increased at a CAGR of 19.9 % over FY 06- 11. The Deposits have
grown at a CAGR of 18.2% over FY 06-11 on account of strong growth in saving account. The
net NPA has increased from 1% in FY 2008 to 1.12% in FY 10. The High interest rates and lower
economic growth has impacted the repayment capacities of borrowers and hence pushing up the
NPAs of banks. The net NPA decelerated from 1.12% in FY 10 to 0.97% in FY 11.
~6~
Indian banks enjoyed higher levels of money supply, credit and deposits as a percentage of GDP
in FY11 as compared to that in FY10 showing improved maturity in the financial sector. Credit
growth remained high in the first half of FY11 on account of increased demand from industry
and the service sector. Personal loans grew significantly by 17% during 2010-11 as compared
with 4.1% during the previous year.
HISTORY
Although some form of banking, mainly of the money-lending type, has been in existence in
India since ancient times, it was only over a century ago that proper banking began. The first
bank in India, though conservative, was established in 1786. From 1786 till today, the journey of
Indian Banking System can be segregated into three distinct phases. They are as mentioned
below:
~7~
BUSINESS DIVISION
Retail banking - Loans to Individuals (Auto loan, Housing Loan, Education Loan and other
personal loan) or small businesses.
Wholesale banking Loans to Mid and Large corporate (Working Capital loans, Project
finance, Term loans, Lease Finance)
Treasury Operations Investment in Equity, Derivates, Commodities, Mutual Funds, Bonds,
Trading and Forex operations
Other Banking Businesses Merchant Banking, Leasing business, Hire purchase, Syndication
services etc.
~8~
COMPANY PROFILE
THE ORGANISATION SET UP OF SBI
~9~
Though the SBI was established as a commercial bank, but with its efforts a new era
of mixed banking system ushered in the country.
The operations of SBI are not only confined to the urban sector but also to the rural
areas.
Financing to agriculture & other priority sectors could also be a viable commercial
activity was proved by the experience of SBI.
SBI Chairman Mr. O. P. Bhatt has been declared CNN-IBNs Businessman of the year
2007.
SBI Chairman Mr. O. P. Bhatt has been awarded the Transformational Leader Award
2007.
SBI has bagged the awards for Most Preferred Bank & Most Preferred Branch for
Home Loans in CNBC Awaaz Consumer Awards of August 2007.
SBI is the only Indian bank to find place in the Fortune Global 500 list.
~ 10 ~
With 4 National level Apex Training Colleges & 54 Learning Centres spread all over the
country, the bank is continuously engaged in skill enhancement of its employees.
SBI is entering into many new businesses with strategic tie-ups Pension Funds, General
Insurance, Custodial Services, Private Equity, Mobile Banking, Advisory Services, Structured
Products, etc.
Depository Products:SBI is now offering following types of depository products for mobilizing the savings of
the general people:
Current Account
Savings Account
Fixed Deposit
Loan Products:-
~ 11 ~
SBI is offering the following loan & advance products to the client that provide good
return to the investment as well as to satisfy the client:
Corporate Banking:
Assistance extended both as Fund based and Non-Fund based facilities to Corporates,
Partnership firms, Proprietary concerns.
Working Capital financing to all segments of industries and services sector such as IT.
Bill Payment
~ 12 ~
Demand Draft
Transaction Enquiry
Government Business:
Government Accounts.
The Internet banking portal of SBI, enables its retail banking customers to operate their
accounts all across India, removing the restrictions imposed by geography and time. It's a
platform that enables the customers to carry out their banking activities from their desktop, aided
by
the
power
and
convenience
of
the
Internet.
Availing the Internet banking services, the following normal banking transactions can be
done online:
~ 13 ~
Apart from these, the other salient value-added features available are:
Depositing taxes
All this is at no cost - It's free! And most important - the site www.onlinesbi.com is
'VeriSign' certified, indicating that it's absolutely safe and secure to transact online.
~ 14 ~
Bank of India
Bank of India (BoI) is an Indian state-owned commercial bank with headquarters in Mumbai,
Maharashtra, India. Government-owned since nationalisation in 1969, Bank of India has 4545
branches as on 31 December 2013, including 54 branches outside India, and about ATMs. [citation
needed]
BoI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial
History
Previous banks that used the name Bank of India
At least three banks having the name Bank of India had preceded the setting up of the present
Bank of India.
1. A person named Sagar Rajani set up the first Bank of India in Delhi (Kolkata) in 1828,
but nothing more is known about this bank.
2. The second Bank of India was incorporated in London in the year 1836 as an AngloIndian bank; it is not clear that it ever actually functioned.
3. The third bank named Bank of India was registered in Bombay (Mumbai) in the year
1906.
~ 15 ~
The earlier holders of the Bank of India name had failed and were no longer in existence by
the time a diverse group of Hindus, Muslims, Parsees, and Jews helped establish the present
Bank of India in 1906. It was the first in India promoted by Indian interests to serve all the
communities of India. At the time, banks in India were either owned by Europeans and
served mainly the interests of the European merchant houses, or by different communities
and served the banking needs of their own community.
The promoters incorporated the Bank of India on 7 September 1906 under Act VI of 1882,
with an authorised capital of Rs. 10 million divided into 100,000 shares each of Rs. 100. The
promoters placed 55,000 shares privately, and issued 45,000 to the public by way of IPO on 3
October 1906; the bank commenced operations on 1 November 1906.
The lead promoter of the Bank of India was Sir Sassoon J. David (18491926). He was a
member of the Sassoons, who in turn were part of a Bombay community of Baghdadi Jews,
which was notable for its history of social service. Sir David was a prudent banker and
remained the chief executive of the bank from its founding in 1906 until his death in 1926.
The first board of directors of the bank consisted of Sir Sassoon David, Sir Cowasjee
Jehangir, J. Cowasjee Jehangir, Sir Frederick Leigh Croft, Ratanjee Dadabhoy Tata,
Gordhandas Khattau, Lalubhai Samaldas, Khetsety Khiasey, Ramnarain Hurnundrai,
Jenarrayen Hindoomull Dani, Noordin Ebrahim Noordin.
~ 16 ~
1921: BoI entered into an agreement with the Bombay Stock Exchange to manage its
clearing house.
1946: BoI opened a branch in London, the first Indian bank to do so. This was also the
first post-WWII overseas branch of any Indian bank.
1967: The Government of Tanzania nationalised BoI's operations in Tanzania and folded
them into the government-owned National Commercial Bank, together with those of
Bank of Baroda and several other foreign banks.
1969: The Government of India nationalised the 14 top banks, including Bank of India. In
the same year, the People's Democratic Republic of Yemen nationalised BoI's branch in
Aden, and the Nigerian and Ugandan governments forced BoI to incorporate its branches
in those countries.
1970: National Bank of Southern Yemen incorporated BoI's branch in Yemen, together
with those of all the other banks in the country; this is now National Bank of Yemen. BoI
was the only Indian bank in the country.
~ 17 ~
1974: BoI opened a branch in Paris. This was the first branch of an Indian bank in
Europe.
1976: The Nigerian government acquired 60% of the shares in Bank of India (Nigeria).
1980: Bank of India (Nigeria) Ltd, changed its name to Allied Bank of Nigeria.
1986: BoI acquired Paravur Central Bank (Ernakulam District Kerala State) in a rescue.
1987: BoI took over the three UK branches of Central Bank of India (CBI). CBI had been
caught up in the Sethia fraud and default and the Reserve Bank of India required it to
transfer its branches.
2006: BoI plans to upgrade the Shenzen and Vietnam representative offices to branches,
and to open representative offices in Beijing, Doha, and Johannesburg. In addition, BoI
plans to establish a branch in Antwerp and a subsidiary in Dar-es-Salaam, marking its
return to Tanzania after 37 years.
2011: BoI opened a fully owned Subsidiary in Auckland, New Zealand on 6 October
2011 (Bank of India (New Zealand) Ltd.)
2012: BoI opened a fully owned subsidiary in Uganda on 18 June 2012 (Bank of India
(Uganda) Ltd.).
~ 18 ~
2013: BoI opened a fully owned subsidiary in Botswana on 9 August 2013 (Bank of India
(Botswana) Ltd.).
19701975 : J.N.Saxena
19771980 : H C Sarkar
19811984 : N Vaghul
19841986 : T. Tiwari
19871991 : R. Srinivasan
19921995 : G. S. Dahotre
19951997 : G. Kathuria
19971998 : M G Bhide
19982000 : S Rajagopal
20002003 : K V Krishanamurthy
20032005 : M Venugopal
20052007 : M.Balachandran
20072009 : T.S.Narayanasami
~ 19 ~
THEORETICAL BACKGROUND
Agriculture
Agriculture is most important enterprise in India. It is a very broad term comprising all
aspect of production .It provides food for population ,fodder for livestock & fulfills needs like
fibre, Fuel, timbre, wood & Raw Material to various industries.
Agril : Soil.
Culture: Cultivation.
Agricultural Finance
The funds are required for the agriculture & for its allied activities.it provides financial
assistance to various perposes or agriculture operation for short & medium periods like minor
Irrigation, Land Development, soil conservation, Farm mechanization, Plantation &
Horticulture , cold Storage & other Allied activities.
~ 20 ~
2/3rd population depends on agriculture. Low growth in agriculture output results in rise in
food prices. Majority of the poor are farmers, a labour & casual labour therefore for reduction
ultimately & elimination of poverty. Agriculture has a significant share in GDP. If GDP is low
then overall GDP is fall down.
AGRICULTURAL FINANCE
Since independence India has made substantial progress in respect of agricultural finance.
The reports of all India Rural Credit Survey Committee and All India Rural Credit Review Show
That farmers were entirely dependent sources of credit. Money Enders are main sources of
credit. They were most convenient and easiest source . his administration as simple and flexible.
The Indian government launched the three-tier banking structure in India. At the apex is
NABARD at the middle level are the urban co-operative banks (UCBS) and a few public sector
banks (PSBS); and at the base are Primary Agriculture credit societies (PACS).
NABARD
~ 21 ~
UCBS, PSBS
PACS
1) PRODUCTION CREDIT
a. Short term:
Loans for 15to 18 months.
Loans for meet daily working requirements
cash components
b. Medium term
~ 22 ~
c. LONG TERM
5-7 YEARS
2) CONSUMPTION CREDIT
It is basically for survival of farm familes
A) Co-operative credit
B) RBI
THE National agri credit fund(long term & stabilization RBI guidelines
~ 23 ~
Recovery r default
C) SBI
D) Commercial Banks
E) Agricultural refinance
F) RRB
Rural based
~ 24 ~
G) NABARD
(National bank for Agriculture and Rural development)
H) Government finance
~ 25 ~
A loan gives in connection with rising of crops which is to be repaid within 18 months.
It includes working capital loans not exceeding rs. 1.00 lacs.
Investment loan:
Marginal farmer
Small farmer
Other farmers
~ 26 ~
Farmer cultivating agriculture land more than 2 hectar (more than 5 Acres).
Salient features
Production loan for plantation & horticulture crops to be covered the scheme a ceiling
of Rs. 1.00 Lakh has been prescribed.
Term loans overdue portion as on 31st Dec. 2007 7 which is not repaid up to
29.02.2008 will eligible for waiver in case of small & marginal farmers.
Loans availed by the farmers in for agriculture activities upto 50000 will be eligible
for loan waiver for all farmers.
In case of other farmers there will be one time settlement under which the farmer will
give 25% is rebate & eligible amount pays the balance of 75% eligible amount.
SECURITIES
~ 27 ~
Primary Security
Whenever any loan is sanctioned some goods or assets are brought with the help of funds. These
are called Primary Security.
Collateral security
On Primary Security bank don`t have control on goods. The goods are under lock & Key of the
bank. In such cases, bank prefers to insist some additional security which is called as collateral
securities.
Bank of India gives revised margin & security norms for Agriculture Advances.
Sr.No.
1
a.
b.
Type of credit
Margin money
Crop loans & other short
Term loans.
Term Loans
Loan amount
i.
ii.
i.
ii.
Margin
No Margin.
15to 20%(depend on
quntum of finance).
No Margin.
15to20%.
c.
Security norms
Crop loans & other short
Term loans.
d.
Term loans
i.
ii.
i.
ii.
~ 28 ~
Hypothecation of
crops.
Mortgage of land&
third party
guarantee.
Hypothecation of
Asset.
Hypothecation of
Asset. Mortgage of
land.
~ 29 ~
Purpose
Eligibility
Amount
For new dug wells as per the NABARD Unit costs for
equipments/estimates.
Repayment
Security
Mortgage of land,
Hypothecation of movable assets and guarantors.
Other Terms & Conditions Proposed well should be located in white watershed area. It
should not be in dark watershed area.
~ 30 ~
Purpose
Eligibility
Amount
Repayment
7 to 9 years.
Security
Other Terms & Conditions Comprehensive insurance of machinery with bank clause.
~ 31 ~
Credit for for financing to the distribution of fertilizers, pesticides& seeds etc.
~ 32 ~
Eligibility- small and marginal farmers who would own maximum of non irrigated and
irrigated land, share croppers/ Tenant farmers.
Repaying capacity- The financing branch satisfies itself that borrowers have a adequate
surplus.
EXPORT FINANCE
Performance Guarantees.
~ 33 ~
Purpose
Cultivation of crops
Meeting the short-term credit needs of farmers for crop
production and allied activities etc.
Maintenance of farm equipments etc.
Eligibility
Amount
Security
Mortgage of land.
Hypothecation of crop/Assets.
Repayment
Other Terms & Conditions Assured and timely availability of working capital for crop
cultivation.
Borrowers are covered under personal accident insurance scheme.
Insurance for notified crops is available.
~ 34 ~
DEVELOPMENT
OF
COMMERCIL
HORTICULTURE
THOUGH
Horticulture
Purpose
Eligibility
Amount
Security
Mortgage of land.
Hypothecation of crops.
Repayment
Within 15 years.
~ 35 ~
LITERATURE REVIEW
Mohanlal Sharma (1979) "Structural changes in Indian commercial banking system since
1969: A study of portfolio profits and policy" analyzed the effects of nationalization on
the banking industry in India
Dr. N. Bharathi (2007) in her article Indian Banking and Finance - A Paradigm Shiftwrote that the banking industry is currently in a transition phase.
Dun & Bradstreet (2008) (an international research body)" India's Top Banks 2008"-there
has been a significant growth in the banking infrastructure of India. Taking into account
all 82 banks in India, there are overall 56,640 branches or offices, The total assets of all
scheduled commercial banks by end-March 2010 is approximately Rs 40, 90,000 crore.
It has passed through various phases. In the process, it has embraced superior technology,
new products and services that are customer centric.
~ 36 ~
Indian Bankers Association & McKinsey ( 2010)- Indian Banking 2010- Towards High
Performing Sector- Analysis the state of Indian Banking Industry in the Financial year
2010.
ICRA (2011) Indian Banking Sector: Challenges Unlikely to Derail the Progress MadeAnalysysis the various challenges & opportunities that stand in front of the Agriculture
loan.
~ 37 ~
~ 38 ~
To know about the banking & financial institutes in the market, offering agriculture loan.
To study the organizational profile of Bank of India and State Bank of India.
To find out the feedback from the farmers who have borrowed loan from SBI and BOI.
~ 39 ~
HYPOTHESIS
Related to the study undertaken, following statements can be the statements for hypothesis,
1) Agriculture credit/ finance has its impact on the farmers progress
2) Agriculture credit/ finance has no impact on the farmers progress
3) The farmers borrowed loan from SBI and BOI are satisfied
4) The farmers borrowed loans from SBI and BOI are not satisfied.
~ 40 ~
RESEARCH METHODOLOGY
Research Definition:Research is a scientific activity in which decision is made & problem is solved.
Research Methodology
The method or formwork within which the research is to be done is called Research
Methodology.
Type of Research of my study is
Exploratory
Data Collection
(1) Primary Data:In the form of feedback of the farmers collected through questionnaire.
(2) Secondary Data: All the data is collected from the books, publication, Records by the bank. Websites.
Sample Size:The determined sample size for the study is 100 farmers.
~ 41 ~
A) Age Group
Sr. No.
Age Group
No.of Farmers
Percentage
20-30
4%
30-40
26
26%
40-50
40
40%
50-60
12
12%
60-70
10
10%
70-80
16
16%
100
100%
Total
~ 42 ~
Age of Farmers
40
40
35
30
26
25
No.of Farmers
20
16
12
15
10
10
5
0
20-30
30-40
40-50
50-60
60-70
70-80
EXPLANATION
The above graph indicates classification of number of farmers in terms of age group.
Maximum number of farmer belongs to the age group 40-50 i.e 40 in numbers 40%.Minimum
number of farmer in the age group 20-30 i.e. 4 in number & 4%.
~ 43 ~
Sr. No.
Land in Acres
No. of farmers
percentage
0-5
44
44%
5-10
20
20%
10-15
16
16%
15-20
10
10%
20-25
4%
25-30
6%
100
100%
4
5
Total
~ 44 ~
25
20
16
20
15
10
10
5
0
0-5
41769
41927
15-20
20-25
25-30
EXPLANATION
The above graph indicates that classification of number of farmers in terms of Land
holdings in Acres The maximum number of farmers having in age group of 0-5 land in
acres i.e 44 farmers & 44 %The minimum number belongs to group of 20-25 lands in
Acres have 4 Farmers are 4%.
~ 45 ~
C) Gender of Farmers
Sr.no.
GENDER
No. of Farmers
Percentage
Male
82
82%
Female
18
18%
Total
100
100%
18
Male
Female
82
~ 46 ~
EXPLANATION
The above chart indicates the distribution of Farmers according to Gender. In which male
farmers have a majority.82 in number. & 82%.The minimum number of female 18 in
number &18%.
~ 47 ~
Sr.No.
Purpose
Number of
farmers
Farming purchase
4%
Equipment
14
14%
Irrigation
52
52%
Development
10
10%
Other(Plantation, Angle)
20
20%
Total
100
100%
~ 48 ~
52
50
40
30
20
14
20
10
Number of farmers
10
EXPLANATION
Above chart shows the Farmers taking loan from the bank for various purposes like
farming purchase, Equipment, Irrigation, Development & Other activities like
(Plantation, Angle).
In which maximum number of farmer taking more credit for Drip Irrigation is 52% &
20% for the other agriculture activities.
~ 49 ~
Sr.No.
Sources of
Information
No. of Farmers
Newspaper
8%
T.V
Bank Officers
32
32%
60
60%
Total
100
100%
Sources of Information
60
60
50
32
40
30
20
No. of Farmers
8
10
0
~ 50 ~
EXPLANATION
The above chart shows that bank creates awareness in the people through different
sources of information like Newspaper, Bank officers, T.V & Friend & Relatives.
The maximum number of people comes to know about agriculture loan schemes of Bank
of India and State Bank of India through Friends & Relatives i.e. 60% & from Bank
officers is 32%.
~ 51 ~
Sr.No.
Satisfaction Level
No. of Farmers
Yes
96
96%
No
4%
Total
100
100%
Satisfaction Level
4
YES
No
96
EXPLANATION
The above chart shows the satisfaction level of farmers about the loan procedure of Bank
of India and State Bank of India In which 96% of the farmers are satisfied about the loan
procedure. & 4% of the farmers are not satisfied.
~ 52 ~
Sr. No.
Heads
No. of Farmers
Co- operative
84
84%
Friendly
16
16%
Non co-operative
Total
100
100%
84
80
70
60
No of farmers
50
40
30
16
20
0
10
0
Co- operative
Friendly
Non co-operative
~ 53 ~
EXPLANATION
The above table shows the approach of bank officers towards Farmers. Like Cooperative, friendly & Non co-operative. 84% of farmer said that Approach of bank officers
towards the farmers is co-operative, & 16% are said that Approach of bank officers towards the
farmers Friendly in nature.
~ 54 ~
Sr. No.
Feedback about
Interest Rate
No. of Farmers
High
4%
Medium
84
84%
Less
12
12%
Total
100
100%
90
80
70
60
50
40
30
20
10
12
4
0
High
Medium
Less
~ 55 ~
EXPLANATION
Above chart shows feedback about interest rates on the Agriculture Loan. The
majority of the Farmers means 84% said that interest Rate is Medium.12% said that the rate is
Less & 4% said that Rate is High.
~ 56 ~
Opinion
No. of Farmers
Long
22
22%
Short
78
78%
Total
100
100%
22
Long
Short
78
EXPLANATION
Above chart shows feedback about Waiting Period for Sanctioning & Disbursement of loan.78%
farmers think that Waiting Period for Sanctioning & Disbursement of loan is short & 22%
farmers think that it is long period.
~ 57 ~
Opinion
No. of Farmers
Hard
8%
Easy
92
92%
Total
100
100%
Repayment option
92
100
90
80
70
60
50
40
30
20
10
0
Repayment option
Hard
Easy
EXPLANATION
Above chart shows Opinion about Repayment option of the Loan In which 92% of farmers said
that Repayment loan option are easy& 8% people said that Repayment loan option is Hard.
~ 58 ~
Sr. No.
Financial Products
No. of Farmers
N.H.B ( National
Horticulture Board)
10
10%
5%
Drip Irrigation
35
35%
Vehicle Loan
12
12%
Cold Storage
10
10%
Allied activity
15
15%
5%
Not known
8%
Total
100
100%
~ 59 ~
Financial Product
35
35
30
25
20
15
10
5
0
12
10
15
10
8
Financial Product
EXPLANATION
Above chart shows the awareness in the people related to Financial Product of the agriculture
loan schemes of the Bank of India and State Bank of India.
~ 60 ~
Sr. No.
Opinion
No. of Farmers
Yes
92
92%
No
8%
Total
100
100%
Recommend to Others
8
Yes
No
92
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EXPLANATION
Above chart shows the farmers want to recommend the Bank of India and State Bank of India to
others in which 92% people wants to recommend & 8% people dont have any interest to
recommend Bank of India and State Bank of India to others.
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CONCLUSION
After analyzing & interpreting Data it was found that Bank of India and State Bank of India is
very good Various facilities are provided to farmers relation between the branch officers & the
farmers are very good.
Related to Study
Maximum no. of farmers belong to age group 40 50 i.e. 40%. In India have a Hindu
undivided family system in which only one person is head of the family. They have
knowledge about farming activities. He can handle the all responsibilities related to
family. He also have handholding as a security.
In which the 82% of land belongs to the male farmers according to HUF. Head of the
family is a male farmer so the male farmer is more than female farmer.
Maximum number of farmers belongs to age Landholding 0 5 Acres i.e. the 44%. It
because of division of family. They also think that when small farm is available we
can develop the land by using the different techniques like farm mechanization,
fertilizers & effective utilization of resources.
60% farmers come to know through friends & relatives penetration of banking sector
reach to the remote consumers & create awareness among farmers about the different
loan scheme so the information is spread more through friends & relatives.
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Farmers said that approach of Bank officers towards farmers is co operative Bank
officers aim to bridging the gap between their co operative approach to friendly
approach and provide continuously inform about the different Scheme.
In the loan schemes many farmers take loan for irrigation i.e. Drip irrigation for
horticulture plantation (Grapes, pomegranate) farmers also get subsidy for plantation.
50% of the total cost for Drip irrigation.
Bank officers are co operative & provide every information to farmers, which are
needed & provide knowledge about different schemes. They have full involvement of
Branch manager. Successful marketing of Agriculture loan with zeal and mission.
Bank of India and State Bank of India has a medium rate of interest said by farmers.
The rate of interest is only levied on whatever amount is withdrawn from sanctioned
amount. So interest only paid on that amount.
The gap between sanctioned and disbursement is keep at minimum level cheap,
timely and adequate, provision of loans. It helps agriculture diversification. The very
short period for sanctioning disbursement of loan said by 78% of farmers.
92% farmers said that repayment of loan is easy because they give some time to
repayment of loan. They encourage people by providing extensive credit and smooth
recovery. Adjustment in Borrowers Account in which the repayment schedule will be
drawn on the loan amount in such way that subsidy amount is adjusted after the bank
loan portion (excluding subsidy) is liquidated.
96% farmers are satisfied about loan procedure because fewer documents are
required. It takes less five for sanctioning and disbursement. They consider
agriculture land as a security and sanctioned the loan otherwise it is very difficult to
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get financial support because land is not easily converted into money. It produces
productive lending to farmer.
Bank provides many agriculture financial products. 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.
92% farmers are like to recommend the Bank of India and State Bank of India to
others because it is a Nationalize bank. It provides extensive credit and smooth
recovery. Bank have large network with core banking system (Rural, semi urban
and urban areas). Bank acts as a financial support by giving productive lending for
increase productivity and income level of the rural families.
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The scope is limited for Nagpur district & specifically two banks State bank of India &
Bank of India Katol branch
The time available for the purpose of study is very less i.e. two months only. Mostly
secondary data is referred than the primary data for the study is limited.
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RECOMMENDATION
Looking at the level of awareness it is recommends that promotion of agriculture loan different
can be done in different ways.
A) Observation: I observed that the awareness about the agriculture loan through friends &
relatives.
Recommendation: Bank officers also have to increase the contacts with farmers. Encourage the
people by conducting seminars; some programmes related to the agricultural schemes how it is
useful in remote areas. So it creates awareness in the farmers.
B) Observation: Many farmers are borrowing loan for agriculture loan for Irrigation i.e. Drip
Irrigation.
Recommendation: Bank have to focus on enhancing the quality of the some new schemes
related to the farm development, equipment, plantation and farm mechanization which are
helpful to fostering the agriculture production which are more important for the development of
Indian economy.
C) Observation: Farmers are less aware about the other financial product related to the to
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.
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Recommendation: So the, Bank have so take some efforts to create awareness about different
financial product by taking some programmes and bank officers have play a proactive role in
aggressive marketing of short term and investment credit to potential barrowers.
D) Observation: no one farmer came to know through the T.V so the very less awareness
through the T.V.
Recommendation: Bank will have to some promotional activities through T.V.
F) Observation: In general observation found that many farmers are intentionally avoid
repayment of loan.
Recommendation: 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 purposes.
G) Observation: If more than one agency lends money for the same purpose at the same time
there is an overlapping of credit to borrower.
Recommendation: Because of overlapping of credit result in financial indiscipline both parts of
lenders & borrowers. There is strictly restrict to farmers to borrowing loan from more than one
agency.
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BIBLIOGRPHY
Books:-
1. Banking Law & Practices by P. N. Varshney. (Published by Sultan Chand & Sons,
Delhi)
Internet Websites:-
1. www.statebankofindia.com
2. www.bankofindia.com
3. www.google.com
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QUESTIONNAIRE (FARMERS)
Name
:-
Address
:-
Age
:-
Sex :- M/ F
Q.1.
Contact No.
Have you borrowed Agriculture Loan from Bank of India and State Bank of
India ?
Yes
No
Q.2.
Q.3
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ii)
Q.4.
How did you come to know about Agriculture Loan of SBI & BOI?
(i) Newspaper (ii) T.V. (iii) Bank officers (iv) Friends and Relatives
Q.5.
Q.6.
Are you satisfied with the Loan procedure of SBI & BOI?
Yes
Q.7.
No
ii)
Q.8.
Give your Comment on :i) Approach of Bank officers :- co-operative / friendly / Non co- operative.
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Q.9.
Are you aware about other financial products related to agriculture loan SBI
& BOI?
If yes, enlist some of them.
i)
ii)
Q. 10. Do you want to recommend SBI & BOI agriculture loan to the others?
Yes
No
If any Suggestion..
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