ASSIGNMENT

ON
FINANCING OF
AGRICULTURAL INPUTS
DISTRIBUTION
S U B M IT T E D
SUBMITTED B Y:
TO: Mr. Kapil S h ikh a
Kathuria M ohan
H -0 8 -M B A -3 6
 INTRODUCTION
§ Finance is considered as essential
lubricant.
§ The farmer needs finance for various
kinds of agri inputs like seeds,
fertilizers, pesticides, agri machinery
etc.
§ Similarly agro traders also require
finance for purchasing and timely
supply of agri inputs.
 D iffe re n t b a n k s p ro v id in g
d iffe re n t sch e m e s to a g ro
§STATE BANK OF tra d e rs
INDIA:
1 . Retail Trade Scheme :
Purpose : For purchase, renovation and
repairing of equipment.
Margin : Up to Rs.25,000 -- No Margin
Rs.25,000 to Rs. 50,000 -- 20 %
Above Rs. 50,000 -- 25 %
2 . SBI Shoppe Scheme :
Purpose :
§Purchase of new/ old shops/establishments/ offices.
§Modernization/ expansion of establishments/ shops
etc.
§All furniture, electrical fittings required for
shops/ offices.
Margin : * 25% * 40% in respect of purchase of
3 . Traders Easy Loan Scheme :
Purpose : To meet normal business requirements
Margin : 35 %
ROI : 13% for TL and 12.5% for cash
credit limit
§STATE BANK OF PATIALA
1 . General Purpose Scheme For Trade and
Service Sector :
Purpose : To finance borrowers doing any lawful
Trading/ Service activities.
Margin : UptoRs 25,000 – nil , Above Rs. 25,000 –
2 . 20
SBP Shoppe
% to 25% Scheme :
Purpose : To meet credit requirement for
purchase of new/ old/ shops and for their
renovation, modernisation.
Margin : 25% ( 40% for purchase of old
property
3 . Laghu) Udhyami credit card ( LUCC ) Scheme :
Purpose : To meet credit requirements of SMEs
Margin : 25%
 §STATE BANK OF MYSORE:
1 . Scheme for traders – Liberalised Trade
Finance
Purpose : To meet credit requirements of retail
traders/ wholesale traders/ small business
enterprises.
Nationalized Banks
Margin : 25% to 30% providing Schemes to
SYNDICATE agro: traders
BANK
1 . Synd Vyapar :
Purpose : To meet credit needs of traders
Margin : 40% on immovable property , 15% on other
securities
ROI : Upto Rs.2 lakhs: PLR, Above Rs.2 lakhs: depend
2 . on
Synd
CR Swarozgar Credit Card :
Purpose : For the benefit of small farmers
Margin : Upto Rs. 25,000 – Nil ,Above Rs.25,000 –
15% to 25%
ROI
3 . Retail: PLR
Credit Card :
Purpose : To ensure timely availability of
§UCO BANK
1 . UCO Trader Loan :
Purpose : For financing WC and T.L. needs of retail
and wholesale trading activities
ROI : BPLR -- .50% i.e. 11.75% p.a.
§UNITED BANK OF INDIA
1 . United Trade Credit :
Purpose : Provision of WC as well as Block Capital
finance for the purpose of b/s in the form of
Overdraft or TL.
Margin : 40% on mortgaged property
ROI : BPLR + .75 i.e. 12.75%
§NABARD
1 . Distribution of agri inputs
Purpose : Provide credit to cooperative banks for
stocking and distribution of agri inputs by
way of sanction of yearly limits.
Repayment : 120 days
CONCLUSION :
•Agriculture development contributes
to National Income and also leads
to growth of national output.
•Govt. provide certain schemes, loans,
policies to farmers at low ROI for
agricultural development.
•Similarly, for the same purpose govt.
provide financial facilities to agro
traders for timely supply of
agricultural inputs to the farmer.