Agriculture has played a vital role in the development of human civilization. Agriculture has labored massive majority of human population until the Industrial Revolution. Recent development in agricultural techniques has steadily increased agricultural productivity, and the widespread diffusion of these techniques during a time period is often regarded as an agricultural revolution. A remarkable shift in agricultural practices has occurred over the past century in response to new technologies. Farming is a significant economic sector for country’s growth and development
The predominant and most dynamic functions of the Bank is to lend money for their customers. Banks safeguards the money and valuables of the people. It provide loans, credit and payment services like paying cheques drawn by customers on the bank, and collecting cheques deposited to customer’s current account
Welcome to this section which provides a one-stop source for important documents reports pertaining to this sector:
Agricultural advances can be classified into:-
a. Direct Agri Advances: The advances given directly to the individual/ farmer/firm/Cooperative societies/corporation for agricultural activities.
b. Indirect Agri Advances: These are the advances extended to institutions like PACS, Milk Coop. Societies/ Self help groups or on ward lending to its member for their economic activities.
Further, on the basis of repayment period the Direct Agri Advances/ Indirect Agri. Advances may be the classified into:-
a. Short term advances.
b. Medium Term advances.
c. Long term advances.
SHORT TERM ADVANCES
Where the repayment is 36 months or less than 36 months, such loans are classified as short term loans this include crop loan and krishi cards. The agricultural loans may be provided as direct advances or indirect advances in case of direct advances the loans may be provided directly from our branches whereas in case of indirect advances the farmers are provided loans through their respective PACS. However, the quantum of advances to an individual in case of loans through PACS is restricted to a maximum 0of Rs. 1.00 lakh. The crop loans are provided both in kharif and Rabi seasons. The kharif season starts from 1st April and ends on 30th September, whereas the Rabi season starts from 1st October and ends on 31st March every year. All the procedures for sanction and disbursement of crop loans in the above season must be completed within the above stipulated time. As far as repayment of loan is concerned the kharif loan is repayable within 12 months time with the last due date fixed as 31st March. In case of Rabi crop loan 09 months time is provided with the last due date 30th June. The crop loan process includes preparation of NCL, withdrawal, disbursement of loans, etc.
MEDIUM AND LONG TERM ADVANCES
Where the repayment period is more than 36 months but does not exceeds 60 months such are treated as medium term loans.
Medium term loans may be provided for all the above mentioned agriculture and allied activities where the repayment period does not exceed 60 months. The Medium loan for any of above activities can be provided directly by our branches or through PACs or other cooperative societies. The unit cost in this case is to be decided on the case to case basis or as per approved unit cost circulated from Head Office time to time. Apart from Agriculture and allied services there are large number of NFS activities for which medium term loans may also be provided.
LONG TERM ADVANCES
Where the repayment period exceeds 60 months and ranging Upto 15 years. Under this category also the loan can be provided for all agricultural and allied activities referred to above. The loan under this category of larger financial outlay and repayment period ranges between 0-12 years. In this case also the finance are to be given on the case to case basis (on project basis) or any fixed unit cost circulated by the Head Office in this regard.
The advances are also classified as below:-