Upload
nagpalanish
View
229
Download
0
Embed Size (px)
Citation preview
7/29/2019 Agri Clu Tura Lloan
1/57
A
PROJECT REPORT
ON
ROLE OF S.B.I IN GRANTING LOAN TO AGRICULTURE
SECTOR
Under the Supervision of: Submitted By:
Dr. Roshan Lal Chirag Mittal
Professor Roll no. 1208251
MM Institute of Management
MM Institute of Management
MM University, Mullana, Ambala, Haryana, 133207
7/29/2019 Agri Clu Tura Lloan
2/57
DECLARATION
I hereby declare that the project report entitled Role of S.B.I in granting
loan to agriculture sector is the produce of my sincere effort. This Final
Research Project Report is being submitted by me alone, at MMIM,
Maharishi Markandeshwar University, Mullana (Ambala) for the partial
fulfillment of the course BBA, and the report has not been submitted to any
other educational institutions for any other Purpose.
Chirag Mittal
7/29/2019 Agri Clu Tura Lloan
3/57
CERTIFICATE
Certified that the research project entitled Role of S.B.I in granting loan to
agriculture sector is an original piece of work done by Mr. Chirag Mittal, Rollno 1208210 during the period of his study under my guidance for the award of the
degree of Bachelor of Business Administration (BBA)
Date: Dr. ROSHAN LALPlace: PROFESSOR
7/29/2019 Agri Clu Tura Lloan
4/57
ACKNOWLEDGEMENT
I would like to express deep sense of hearty and special gratitude to my faculty
Guide Dr. ROSHAN LAL, Professor, MM Institute of Management,
Maharishi Markandeshwar University, Mullana-Ambala for his valuable
suggestions and constant help and encouragement throughout the advancement of
this project report.
I am deeply indebted to Dr. ROSHAN LAL without whose help, stimulating
suggestions and encouragement this project would not have seen the light at the
end of the tunnel.
Last but definitely not the least; I convey special thanks to all my colleagues for
their morale boosting and valuable ideas.
7/29/2019 Agri Clu Tura Lloan
5/57
CONTENTS
CHAPTER-1 INTRODUCTION
INTRODUCTION OF BANKING 1-3
AGRICULTURAL FINANCE IN INDIA 4-11
ABOUT S.B.I 12-
15
SCHEMES OF AGRICULTURAL FINANCE 16-
27
CHAPTER-2 LITERATURE REVIEW 28-
30
CHAPTER-3 RESEARCH METHODOLOGY
31-32
SCOPE OF THE STUDY
RESEARCH DESIGN
DATA COLLECTION METHODS
RESEARCH OBJECTIVES
LIMITATIONS OF STUDY
CHAPTER-4 DATA ANALYSIS AND INTERPRETATION
33-45
FINDINGS & SUGGESTIONS 46
CONCLUSION 47
BIBLIOGRAPHY
QUESTIONAIRE
7/29/2019 Agri Clu Tura Lloan
6/57
CHAPTER-1
INTRODUCTION OF BANKING
__________________________________________________________________
The world of banking has assumed a new dimension at dawn of the 21st century
with the advent of tech banking, thereby lending the industry a stamp of
universality. In general, banking may be classified as retail and corporate banking.
Retail banking, which is designed to meet the requirement of individual customersand encourage their savings, includes payment of utility bills, consumer loans,
credit cards, checking account and the like. Corporate banking, on the other hand,
caters to the need of corporate customers like bills discounting, opening letters of
credit, managing cash, etc.
Metamorphic changes took place in the Indian financial system during the eighties
and nineties consequent upon deregulation and liberalization of economic policies
of the government. India began shaping up its economy and earmarked ambitious
plan for economic growth. Consequently, a sea change in money and capital
markets took place. Application of marketing concept in the banking sector was
introduced to enhance the customer satisfaction the policy of privatization of
banking services aims at encouraging the competition in banking sector and
introduction of financial services. Consequently, services such as Demat, Internet
banking, Portfolio Management, Venture capital, etc, came into existence to cater
to the needs of public. An important agenda for every banker today is greater
operational efficiency and customer satisfaction. The mew watchword for the bank
is pretty ambitious: customer delight.
7/29/2019 Agri Clu Tura Lloan
7/57
The introduction to the marketing concept to banking sectors can be traced back to
American Banking Association Conference of 1958. Banks marketing can be
defined as the part of management activity, which seems to direct the flow of
banking services profitability to the customers. The marketing concept basically
requires that there should be thorough understanding of customer need and to learn
about market it operates in. Further the market is segmented so as to understand the
requirement of the customer at a profit to the banks.
DEFINITION OF BANK
The Oxford dictionary defines the Bank as
An establishment for the custody of money, which it pays out, on a
customers order.
According to Whitehead
A Bank is defined as an institution which collects surplus funds from the
public, safeguards them, and makes them available to the true owner when
required and also lends sums be their true owners to those who are in need of funds
and can provide security.
Banking Company in India has been defined in the Banking Companies act 1949,
One which transacts the business of banking which means the accepting, for
the purpose of lending or investment of the deposits of money from the public,
repayable on demand, or otherwise and withdraw able be cheque, draft, order or
otherwise.
7/29/2019 Agri Clu Tura Lloan
8/57
The banking system is an integral subsystem of the financial system. It represents
an important channel of collecting small savings form the households and lending
it to the corporate sector. The Indian banking system has Reserve Bank of India
(RBI) as the apex body for all matters relating to the banking system. It is the
central Bank of India. It is also known as the Banker To All Other Banks.
EVOLUTION OF INDIAN BANKING
Ancient banking system of India constituted of indigenous bankers. They have
been carrying on their age-old banking operations in different parts of the country
under different names. The modern age of banking constitutes the fundamentalbasis of economic growth. The term Bank is being used since long time but there is
no clear conception regarding its beginning. According to the viewpoint, in good
old days. Italian money leaders were known asB anchi because they kept a
special type of table to transact their business.
IMPORTANCE OF BANKS
Today banks have become a part and parcel of life. There was a time when
dwellers of the city alone could enjoy their services. Now banks offer access to
even a common man and their activities extend to areas hitherto untouched. Banks
cater to the needs of agriculturalists, industrialists, traders and to all the other
sections of the society. In modern age, the banking constitutes the fundamental
basis of economic growth. Thus, they accelerate the economic growth of a country
and steer the wheels of the economy towards its goals of self reliance in all
fields. It naturally arouses ones interest in knowing more about the Bank and the
various men and the activities connected with it.
7/29/2019 Agri Clu Tura Lloan
9/57
AGRICULTURE FINANCE IN INDIA
Finance in agriculture is as important as development of technologies. Technical
inputs can be purchased and used by farmer only if he has money (funds). But hisown money is always inadequate and he needs outside finance or credit.
Professional money lenders were the only source of credit to agriculture till 1935.
They use to charge unduly high rates of interest and follow serious practices while
giving loans and recovering them. As a result, farmers were heavily burdened with
debts and many of them perpetuated debts. There were widespread discontents
among farmers against these practices and there were instances of riots also.
With the passing of Reserve Bank of India Act 1934, District Central Co-op. Banks
Act and Land Development Banks Act, agricultural credit received impetus and
there were improvements in agricultural credit. A powerful alternative agency
came into being. Large-scale credit became available with reasonable rates of
interest at easy terms, both in terms of granting loans and recovery of them.
Although the co-operative banks started financing agriculture with their
establishments in 1930s real impetus was received only after Independence when
suitable legislation were passed and policies were formulated. There after, bank
credit to agriculture made phenomenal progress by opening branches in rural areas
and attracting deposits.
Till 14 major commercial banks were nationalized in 1969, co-operative banks
were the main institutional agencies providing finance to agriculture. Afternationalization, it was made mandatory for these banks to provide finance to
agriculture as a priority sector. These banks undertook special programs of branch
expansion and created a network of banking services throughout the country and
started financing agriculture on large scale. Thus agriculture credit acquired multi-
7/29/2019 Agri Clu Tura Lloan
10/57
agency dimension. Development and adoption of new technologies and availability
of finance go hand in hand. In bringing "Green Revolution", "White Revolution"
and now "Yellow Revolution" finance has played a crucial role. Now the
agriculture credit, through multi agency approach has come to stay.
The procedures and amount of loans for various purposes have been standardized.
Among the various purposes "Crop loans" (Short-term loan) has the major share.
In addition, farmers get loans for purchase of electric motor with pump, tractor and
other machinery, digging wells or boring wells, installation of pipe lines, drip
irrigation, planting fruit orchards, purchase of dairy animals and feeds/fodder for
them, poultry, sheep/goat keeping and for many other allied enterprises.
7/29/2019 Agri Clu Tura Lloan
11/57
AGRICULTURE GROWTH RATE IN INDIA
Agriculture Growth Rate in India GDP had been growing earlier but in the last few
years it is constantly declining. Still, the Growth Rate of Agriculture in India GDP
in the share of the country's GDP remains the biggest economic sector in the
country. India GDP means the total value of all the services and goods that are
produced within the territory of the nation within the specified time period. The
country has the GDP of around US$ 1.09 trillion in 2007 and this makes the Indian
economy the twelfth biggest in the whole world. The growth rate of India GDP is
9.4% in 2006- 2007. The agricultural sector has always been an important
contributor to the India GDP. This is due to the fact that the country is mainly
based on the agriculture sector and employs around 60% of the total workforce in
India. The agricultural sector contributed around 18.6% to India GDP in 2005.
Agriculture Growth Rate in India GDP in spite of its decline in the share of the
country's GDP plays a very important role in the all round economic and social
development of the country. The Growth Rate of the Agriculture Sector in India
GDP grew after independence for the government of India placed special emphasis
on the sector in its five-year plans. Further the Green revolution took place in India
and this gave a major boost to the agricultural sector for irrigation facilities,
provision of agriculture subsidies and credits, and improved technology. This in
turn helped to increase the Agriculture Growth Rate in India GDP.
7/29/2019 Agri Clu Tura Lloan
12/57
The agricultural yield increased in India after independence but in the last few
years it has decreased. This in its turn has declined the Growth Rate of the
Agricultural Sector in India GDP. The total production of food grain was 212
million tonnes in 2001- 2002 and the next year it declined to 174.2 million tonnes.
Agriculture Growth Rate in India GDP declined by 5.2% in 2002- 2003. The
Growth Rate of the Agriculture Sector in India GDP grew at the rate of 1.7% each
year between 2001- 2002 and 2003- 2004. This shows that Agriculture Growth
Rate in India GDP has grown very slowly in the last few years.
Agriculture Growth Rate in India GDP has slowed down for the production in this
sector has reduced over the years. The agricultural sector has had low production
due to a number of factors such as illiteracy, insufficient finance, and inadequate
marketing of agricultural products. Further the reasons for the decline in
Agriculture Growth Rate in India GDP are that in the sector the average size of the
farms is very small which in turn has resulted in low productivity.
Also the Growth Rate of the Agricultural Sector in India GDP has declined due to
the fact that the sector has not adopted modern technology and agricultural
practices. Agriculture Growth Rate in India GDP has also decreased due to the fact
that the sector has insufficient irrigation facilities. As a result of this the farmers
are dependent on rainfall, which is however very unpredictable.
7/29/2019 Agri Clu Tura Lloan
13/57
NATIONALISED BANKS
1. Allahabad Bank - offers the Kisan Credit Card and Kisan Shakti Yojana
Scheme. The Kisan Credit Card is a unique scheme for farmers through which they
can draw a cash loan for crop production as well as domestic needs from the card-
issuing branch within the sanctioned limit. The Kisan Shakti Yojana provides farm
investment credit, as well as personal/domestic loans including repayment of debt
to moneylenders. The permissible loan limit will be 50 per cent of the value of land
or 5 times the net farm income, whichever is lower, less the outstanding amount, ifany, in Agril.
2. Andhra Bank - provides facilities to farmers like AB Kisan Vikas Card, AB
Pattabhi Agricard, AB Kisan Chakra, rural godowns, agri clinics, agri service
centres, self help groups and solar cookers. They also provide other schemes such
as Kisan Sampathi, tractor financing, Kisan Green Card, Surya Sakhti and loans to
dairy agents.
3. Bank of Baroda - offers farmers the Baroda Kisan Credit Card. It also has
schemes for the purchase of agricultural implements, heavy agricultural machinery
like tractors, irrigation and other infrastructure. Bank of Baroda also finances the
development of agri industries like horticulture, sericulture, fisheries, dairy and
poultry.
4. Bank of India - has a Kisan Credit Card Scheme that helps farmers raise
short-term funds for agriculture and other farm-based activities, on an on-going
basis, with very flexible and friendly repayment terms. It also offers an agricultural
7/29/2019 Agri Clu Tura Lloan
14/57
loan for development of agriculture related industries, purchase of machinery and
other agricultural purposes.
5. Bank of Maharashtra - offers agriculturists a Mahabank Kisan Credit Card
and financial schemes for digging new wells, purchasing harvesters, livestock,
vehicles and land. Repayment terms for different agricultural loans range from
three to fifteen years.
6. Canara Bank - provides Kisan Credit Cards. Limits up to 50,000 have no
margin while those above 50,000 have a margin of 15 to 20 percent. Other than
this, Canara Bank provides a wide array of financial schemes for different
agricultural purposes.
7. Central Bank of India - The Central Kisan Credit Card is a credit service
provided to farmers on the basis of their holdings for purchasing agricultural
inputs. Only those farmers having a good track record for the past 2 years with the
bank as a borrower or depositor and who are not defaulters to any credit institution
would be considered for loans.
8. Corporation Bank - offers a range of loan schemes to farmers. They are the
Corp Gram Mitra Yojana, Corp Arthias Loan Yojana, Corp Kisan Tie-Up Loan
Scheme, Corp Kisan Farm Mechanisation Scheme and Corp Kisan Vehicle Loan
Yojna.
9. Dena Bank - Dena Bank has sponsored 2 Regional Rural Banks namely
Dena Gujarat Gramin Bank in Gujarat and Durg Rajnandgaon Gramin Bank
(DRGB) in Chhattisgarh. The bank has set up a Rural Development Foundation for
training unemployed youth in rural areas. Other financial schemes of the bank are
the Dena Swacch Gram Yojana, Dena Kisan Gold Credit Card Scheme and the
Dena Bhumiheen Kisan Credit Card Scheme.
7/29/2019 Agri Clu Tura Lloan
15/57
10. Indian Bank - has a wide range of schemes for agriculturalists such as
Swarojgar Credit Card, Gramin Mahila Sowbhagya Scheme, Kisan Bike Loan
Scheme, Yuva Kisan Vidya Nidhi Yojana and Indian Bank Kisan Card Scheme.
11. Indian Overseas Bank - offers agri business consultancy services that
include conducting feasibility and market studies, preparation of detailed project
reports and formulation of rehabilitation packages for sick agro units.
12. Oriental Bank of Commerce - It has two agricultural projects - the
Grameen Project and the Comprehensive Village Development Programme. The
Grameen Project involves disbursing small loans ranging from Rs. 75 onwards to
mostly women. Training is also provided in villages in using locally available raw
material to produce pickles and jams. The Comprehensive Village Development
Programme focuses on providing an integrated package of rural finance to villagers
to build up their village.
13. Punjab and Sind Bank - offers a range of financial schemes for farmers
like the Zimidara Credit Card, tractor finance scheme, drip irrigation scheme,
Kheti Udyog Khazana Yojana, vermi composting scheme, horticulture clinic and
private veterinary clinic with dairy unit scheme.
14. Punjab National Bank - This bank has a special website called PNB Krishi
for agriculturalists. It gives details on crop practices, plant protection, farm
machinery, market prices and other farming news and activities. The website also
provides a list of financial schemes offered by Punjab National Bank on production
credit, investment credit, composite loans, animal husbandry and farm
mechanization.
15. Syndicate Bank - offers a wide range of agricultural loan products such as
the Synd Jai Kisan Loan Scheme, Jewel Loan Scheme for Agriculture, Syndicate
7/29/2019 Agri Clu Tura Lloan
16/57
Farm House Scheme, Finance for Hi-tech Agriculture, Development of Irrigation
Infrastructure scheme, Syndicate 2/3/4 Wheelers Scheme and the Syndicate Kisan
Credit Card (S.K.C.C).
16. UCO Bank - This Bank provides the UCO Hirak Jayanti Krishi Yojana to
meet the long-term credit needs of the farming community in rural areas for
agriculture, allied activities as well as for personal purposes. Only farmers below
60 years are eligible to apply. Minimum quantum of the loan is Rs. 25,000/- and
the maximum is Rs. 5 lakhs.
17. Union Bank of India - Facilities provided to farmers include Kisan ATM
Cards and special Kisan ATM Machines. These ATM's are easy to operate and do
not require farmers to have a high level of literacy. They are voice enabled in the
local language, have a touch screen monitor and work on a bio-metric
authentication system like finger print verification.
18. United Bank of India - The range of financial schemes offered to
agriculturalists include the United Krishi Laghu Paribahan Yojana, United Krishi
Sahayak Yojana, United Gramyashree Yojana, Gramin Bhandaran Yojana and the
United Bhumiheen Kisan Credit Card.
19. Vijaya Bank - This bank offers one comprehensive financial scheme known
as the Vijaya Krishi Vikas (VKV) Scheme. This scheme provides a simple package
to farmers to meet entire agricultural credit requirements such as crop production,
investment credit and consumption credit. All farmers including owners, tenant
cultivators, leased land farmers and sharecroppers are eligible for this scheme.
7/29/2019 Agri Clu Tura Lloan
17/57
SCHEMES FOR AGRICULTURE FINANCE
1. SBT KISAN GOLD CARD SCHEME (General purpose Agriculture TermLoan)
ELIGIBILITY
a. Farmers having good track record of repayment for the last two years.
b. Farmers who have closed their loan account without default and not our
current borrowers.
c. Farmers who have defaulted in repayment but closed the Loan within the
stipulated repayment period.
d. Farmers who are maintaining deposits with the Bank.
e. Good borrowers of other banks provided they liquidate their dues with
other banks.
f. Good farmers who have not availed loans from any bank.
PURPOSE
The borrower is at liberty to utilize 50% of the amount for any purpose, including
consumption purpose and purchase of land.
AMOUNT OF LOAN
The amount of loan is limited to five times the annual farm income including
income from allied activities or 50% of the value of the land offered as collateral
security, whichever is less, subject to a maximum of Rs.10 lakh.
7/29/2019 Agri Clu Tura Lloan
18/57
RATE OF INTEREST
Interest rate ranges from 1% below PLR.
SECURITY
Hypothecation of crops and assets, if any, created out of bank finance and existing
movable assets such as milch animals, pump sets etc.
The loan will be secured by equitable mortgage of properties worth double the loan
amount, or term deposit receipts, LIC policies of adequate surrender value, NSCs
completed lock in period or more etc.
DISBURSEMENT
Cash disbursals are allowed to the full extent of the credit limit.
REPAYMENT
The repayment period shall be 10 years. The due date of the instalment shall be
fixed in such a way to coincide with the date of generation of income.
2. KISAN CREDIT CARD SCHEME
ELIGIBILITY
All agriculturists who are in need of short term production requirements. ATM
facility and Personal Accident Insurance Scheme for life up to Rs.50000/- and
permanent disability cover up to Rs.25000/- is available on request.
PURPOSE
To provide hassle free short-term credit to farmers on the basis of their land
holdings for purchase of inputs and draw cash to meet their production needs. i.e.
Cultivation expenses including allied activities with a consumption component.
7/29/2019 Agri Clu Tura Lloan
19/57
AMOUNT OF LOAN
To be fixed on the basis of operational holdings and scale of finance with
consumption component 15% (maximum Ra.10000/-) of production credit. The
scale of finance to farmers who own cultivated land below one acre will be at the
rate of Rs.40000/- (on pro rata basis) and farmers who own more than one acre
with intensive farming of land be given at the rate of Rs.37500/- per acre and part
thereof.
RATE OF INTEREST
Interest rate ranges from 2.50% below to 1.50% above BPLR for various limits.
REPAYMENT
Running Cash Credit account for 36 months subject to annual review and total
annual credit should exceed annual debit.
3. HOMESTEAD FARMING
PURPOSE
A scheme for financing farmers practicing mixed cropping / inter cropping along
with allied activities to enable them to undertake cultivation of various crops in a
more integrated way. The scheme provides the farmers with sufficient working
capital required for their homestead farming (Mixed cropping along with allied
activities) by fixing scale of finance based on land holding to meet the cost of
entire farming activities.
7/29/2019 Agri Clu Tura Lloan
20/57
AMOUNT OF LOAN
The farmers who own cultivated land below one acre be given the scale of finance
on pro rata basis at the rate of Rs.40000/- and farmers who own more than one acre
of land be given at the rate of Rs.37500/- per acre and part thereof.
RATE OF INTEREST
Interest rate ranges from 2.50% below to 1.50% above BPLR for various limits.
REPAYMENT
The facility will be sanctioned as an Agriculture Cash Credit limit (In case of
Kisan Credit Card running cash credit).
4. LOAN FOR ESTATE PURCHASE
ELIGIBILITY
The estate should be either in yielding stage with the crops in its prime yield age or
capable of being developed in to a viable unit. The yield / net income of the estate
should be sufficient to liquidate the proposed loan and interest accrued with in a
period of 7 to 10 years. The proposed estate should be free from encumbrance and
entire property should be offered as security to the
loan.
PURPOSE
To encourage those who prefer to settle down in agriculture and are in the look out
of good / viable estates for purchase and also to improve production in agriculture.
7/29/2019 Agri Clu Tura Lloan
21/57
AMOUNT OF LOAN
The quantum of loan that will be considered for sanction will be 75% of the
registered value or 50% of the market value whichever is low. In exceptional cases
80% of the registered value or 50% of the market share whichever is low is also
considered. The loan for the development of the estate like land development
including working capital can also be sanctioned.
RATE OF INTEREST
Interest rate same as BPLR
REPAYMENT
Repayment of loan will be in quarterly/half yearly / yearly instalments depending
on the harvest of the crops and the loan shall be repaid within a maximum period
of 7 to 10 years.
5. SCHEME FOR FINANCING FARMERS FOR PURCHASE OF LAND
FOR AGRICULTURAL PURPOSES
ELIGIBILITY
Small and Marginal farmers - land maximum upto 5 acres of non-irrigated land or
2.5 acres of irrigated land including the land purchased under the scheme. Tenant,
sharecropper and landless agricultural labourers with a good record of prompt
repayment of our loans for the last 2 years are also eligible.
PURPOSE
To finance small and marginal farmers, share croppers, tenant cultivators for
purchasing land to expand activities and to make existing small and marginal units
economically viable to bring fallow lands and waste lands under cultivation to step
7/29/2019 Agri Clu Tura Lloan
22/57
up agricultural production as well as productivity also to finance share croppers /
tenant farmers to enable them to diversify farming activities to allied areas to
increase their income.
AMOUNT OF LOAN
Maximum loan under the scheme towards land cost shall not exceed Rs 5 lakh.
Cost of development/economic activity shall be financed under the banks other
financing schemes.
RATE OF INTEREST
Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.
REPAYMENT
Repayment of the loan will be 7 to 12 years in half yearly / yearly installments
with maximum of 24 months moratorium period. Gestation period / repayment due
dates etc will be fixed according to income generation from the activity.
6. SCHEME FOR CULTIVATION OF MEDICINAL PLANTS
ELIGIBILITY
All agriculturists are eligible.
PURPOSE
Scheme for financing cultivation of 22 medicinal plants cultivated extensively and
also in great demand in the local as well as foreign market.
AMOUNT OF LOAN
Depending on the area of cultivation / project cost
7/29/2019 Agri Clu Tura Lloan
23/57
RATE OF INTEREST
Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.
REPAYMENT
Repayment should coincide with harvesting and marketing or at the time
generation of income from the scheme.
7. SCHEME FOR CULTIVATION OF VANILLA
ELIGIBILITY
All agriculturists are eligible.
PURPOSE
Scheme for financing cultivation of Vanilla, a cash crop, gaining ground in the
State of Kerala.
AMOUNT OF LOAN
Amount of finance will be Rs.250000/- per hectare for pure crops and Rs.210000/-
per hectare for intercrop.
RATE OF INTEREST
Normal rate of interest as applicable to ATL
REPAYMENT
The loan shall be repaid within a period of 7 years, in yearly instalments. Farmers
eligible for two years gestation period and interest is repayable on the 3rd and 4th
year and the principal from the 5th to 7the year.
7/29/2019 Agri Clu Tura Lloan
24/57
8. SBT RAIN WATER HARVESTING SCHEME
ELIGIBILITY
Farmers having land holding of 0.50 acre or more are eligible to be considered for
finance under this scheme.
PURPOSE
Scheme envisages construction of low cost tanks for collecting and storing
rainwater and using it for irrigation, by siphon arrangement, utilizing gravitation
flow or by installing motor pump.
AMOUNT OF LOAN
Maximum amount of finance will be Rs.88000/- per acre. Scheme can be adopted
in smaller areas also by reducing the cost proportionately.
RATE OF INTEREST
Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.
REPAYMENT
Repayment based on the income generated from the crops raised and and cropping
pattern. The maximum period eligible for repayment is 8 years in annual
installments.
7/29/2019 Agri Clu Tura Lloan
25/57
9. PRODUCE MARKETING LOAN (Advance against Warehouse Receipt)
ELIGIBILITY
a. Farmers / traders depositing farm produce in the warehouses of the central / state
warehousing corporations.
a. Scheme will be operative in Karnataka, Andhra Pradesh, Tamilnadu & Kerala.
PURPOSE
a. To protect the farmers from the compulsion to sell their produce immediately
after harvest of produce despite an adverse market.
b. To finance farmers and traders against warehouse receipt.
AMOUNT OF LOAN
70% of the value of the warehouse receipt, valued at the market value or 70% of
the market price advised by Agri. Dept, HO whichever is less.
RATE OF INTEREST
Farmers
Up to Rs.3 lakh - 3.50% below PLR 9.50%
Above Rs.3 lakh - 2.50% below PLR 10.50%
Traders
2.50% below PLR 10.50% (Irrespective of the limit)
REPAYMENT
On demand / 6 months which can be extended up to 12 months subject to
satisfactory shelf life / market condition.
7/29/2019 Agri Clu Tura Lloan
26/57
10. AGRI. LOAN TO NON-RESIDENT INDIANS
ELIGIBILITY
Agricultural advances are available to the resident family members (means spouse,
father, mother, brother, sister etc.) of Non-Resident Indians for land-based
activities in respect of the land held by them in India subject to:
a. The loan should be need based and the total land holding of the Non-Resident
Indian, in individual name or jointly with others, should not exceed 5 ha.
b. The loan amount shall not be used for acquiring any additional land.
PURPOSE
To finance farmers only for land-based activities and to carryon agricultural
activities on the existing land.
AMOUNT OF LOAN
The maximum amount of the loan will be need based.
RATE OF INTEREST
Interest rate ranges from 2.50% below to 1.50% above BPLR for various short-
term limits and from 1.75% below to 2.00% above BPLR for various long-term
limits.
REPAYMENT
The loan can be repaid out of the income generated from the agricultural activities
or remittances from abroad or by debit to their NRE/NRO/FCNR accounts.
11. MINOR IRRIGATION
Projects with cumulative command area of less than 2000 ha are called minor
irrigation projects
7/29/2019 Agri Clu Tura Lloan
27/57
ELIGIBILITY
The beneficiary should have a minimum of 50 cents of land to be brought under
irrigation to ensure viability and repayment of loan.
PURPOSE
Scheme for developing irrigation potential, Minor Irrigation, Installation of Pump
set Drip Irrigation etc.
AMOUNT OF LOAN
As per the project submitted.
RATE OF INTEREST
Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.
REPAYMENT
The loan shall be repaid within a period of 9 years, in yearly instalments.
12. FARM MECHANISATION
Loan for Farm Mechanisation, Purchase of tractors, Power Tillers, etc.
ELIGIBILITY
a. Tractors with engine capacity up to 35 HP The applicant should own /
cultivate six acres of perennially irrigated land.
b. Tractors with engine capacity above 35 HP The applicant should own /
cultivate eight acres of perennially irrigated land.
c. Power Tillers the applicant should own / cultivate four acres of perennially
irrigated land.
7/29/2019 Agri Clu Tura Lloan
28/57
PURPOSE
To purchase tractor / power tillers for agricultural activities.
AMOUNT OF LOAN
Amount of advance will be the investment cost of tractor / power tiller and
implements less margin @15%.
RATE OF INTEREST
Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.
REPAYMENT
The period of repayment shall be 9 years for tractors and 7 years for power tillers.
7/29/2019 Agri Clu Tura Lloan
29/57
STATE BANK OF INDIA
State Bank of India (SBI) is the largest state-ownedbanking and financial
services company in India. The bank traces its ancestry to British India, throughthe Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta,
making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras
merged into the other two presidency banks, Bank of Calcutta and Bank of
Bombay to form Imperial Bank of India, which in turn became State Bank of India.
The government of India nationalized the Imperial Bank of India in 1955, with the
Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India.
In 2008, the government took over the stake held by the Reserve Bank of India.
SBI provides a range of banking products through its vast network of branches in
India and overseas, including products aimed at non-resident Indians (NRIs). The
State Bank Group, with over 16,000 branches, has the largest banking branch
network in India.Its also considered as the best bank even abroad ,having around
130 branches overseas [including 1 ADB]and one of the largest financialinstitution in the world . With an asset base of $352 billion and $285 billion in
deposits, it is a regional banking behemoth. It has a market share among Indian
commercial banks of about 20% in deposits and advances, and SBI accounts for
almost one-fifth of the nation's loans.
The State Bank of India is the 29th most reputed company in the world according
toForbes.[3] Also SBI is the only bank to get featured in the coveted "top 10 brands
of India" list in an annual survey conducted by Brand Finance and The Economic
Times in 2010.
http://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/#cite_note-2http://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/#cite_note-27/29/2019 Agri Clu Tura Lloan
30/57
The State Bank of India is the largest of the Big Fourof India, along with ICICI
Bank, Punjab National Bank and HDFC Bankits main competitors. and"
GUINNESS BOOK OF WORLD RECORD " that 56 million transactions
happening per day all over the world is definitely an achievement
History
State Bank of India Mumbai Main Branch.
The roots of the State Bank of India rest in the first decade of 19th century, when
the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June
1806. The Bank of Bengal and two other Presidency banks, namely, the Bank of
Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on1 July 1843). All three Presidency banks were incorporated as joint stock
companies, and were the result of the royal charters. These three banks received
the exclusive right to issue paper currency in 1861 with the Paper Currency Act, a
right they retained until the formation of the Reserve Bank of India. The
Presidency banks amalgamated on 27 January 1921, and the reorganized banking
entity took as its name: Imperial Bank of India. The Imperial Bank of India
remained a joint stock company Pursuant to the provisions of the State Bank of
India Act (1955), the Reserve Bank of India, which is India's central bank,
acquired a controlling interest in the Imperial Bank of India. On 30 April 1955, the
Imperial Bank of India became the State Bank of India.
http://en.wikipedia.org/wiki/Big_Four_(banks)#Indiahttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/File:SBI_Mumbai_Main_Branch.jpghttp://en.wikipedia.org/wiki/Big_Four_(banks)#Indiahttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bank7/29/2019 Agri Clu Tura Lloan
31/57
Associate banks
SBI has five associate banks:
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
State Bank of Saurashtra - merged with SBI in 2008.
State Bank of Indore - merged with SBI in 2010.
Earliar SBI had only seven associate banks that, with SBI, constitute the State
Bank Group. All use the same logo of a blue keyhole and all the associates use the
"State Bank of" name, followed by the regional headquarters' name. Originally, the
then seven banks that became the associate banks belonged toprincely states until
the government nationalised them between October 1959 and May 1960. In tune
with the first Five Year Plan, emphasizing the development of rural India, the
government integrated these banks into the State Bank of India to expand its rural
outreach. There has been a proposal to merge all the associate banks into SBI to
create a "mega bank" and streamline operations.
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of state banks from seven to six.
Then on 19 June 2009 the SBI board approved the merger of its subsidiary, State
Bank of Indore, with itself. SBI holds 98.3% in State Bank of Indore. (Individuals
who held the shares prior to its takeover by the government hold the balance of
1.77%.)
http://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indore7/29/2019 Agri Clu Tura Lloan
32/57
The acquisition of State Bank of Indore added 470 branches to SBI's existing
network of 12,448 and over 21,000 ATMs. Also, following the acquisition, SBI's
total assets will inch very close to the Rs 10-lakh crore mark. Total assets of SBI
and the State Bank of Indore stood at Rs 998,119 crore as on March 2009. The
process of merging of State Bank of Indore was completed by April 2010, and the
SBI Indore Branches started functioning as SBI branches on 26 August 2010.
IVR (Interactive Voice Recording)
State Bank of India Mumbai LHO.
Branches of SBI
State Bank of India has 131 foreign offices in 32 countries across the globe.
SBI has about 21,000 ATMs; and SBI group(including associate banks) has
about 45,000 ATMs.
SBI has 26,500 branches, including branches that belong to its associate
banks.
SBI includes 99345 oficces in our country.
http://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/w/index.php?title=Mumbai_LHO&action=edit&redlink=1http://en.wikipedia.org/wiki/File:SBI_Mumbai_LHO.jpghttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/w/index.php?title=Mumbai_LHO&action=edit&redlink=17/29/2019 Agri Clu Tura Lloan
33/57
CHAPTER-2
REVIEW OF LITERATURE
_____________________________________________1) Mittal, Arun, (2006),Advertising appeal is the method used to draw the
attention of consumers and to influence their feelings toward the product,
service, or cause. There are hundreds of different appeals that can be used as
the foundation for advertising messages. These are the central idea of an ad
which has been used to catch the attraction of customer by heart. The theme
of a commercial strikes a person in depth and forces him/her to act in the
desired manner. Generally advertising appeals are broken into two
categories: rational appeals and emotional appeals.
Uses of Appeals in Banking Services Advertising:
Name of
Bank
Broad
Category
Personal/Social Marketing
Approach
Theme/Punch Line
Union Bank
of India
Emotional
Appeal
Social/Parental
Affection
Security and Future
benefit
Because your dreams are
not only yours.
Royal Bank
of Scotland
Group
Emotional
Appeal
Personal/Style Differentiation In years a player comes
who change the way the
game is played.
HSBC Rational Practical Customization of
Service Offering
Not two people are the
same
IDBI Rational Practical Comprehensiveness
of Services offering
Banking for All
State Bank
of India
Emotional Personal/Reliability
Security
Supporting the
customers
With you all the way
2) Traditional service quality
7/29/2019 Agri Clu Tura Lloan
34/57
During the past few decades, the widely acknowledged importance of service
quality resulted in numerous attempts by researchers, practitioners and managers,
aimed at its conceptualization and measurement. However, this has been proven to
be a difficult task, causing long-lasting debates among those involved, mainly due
to the intangible nature of services and problems stemming from the simultaneous
production and consumption of a service (Carman, 1990). Despite this controversy,
it can be argued that there is a convergence towards the Parasuraman et al. (1988,
p. 16) view that customer perceived service quality, is a global judgment or atti-
tude, relating to the superiority of the service. Several measuring instruments have
been developed, aiming to capture and explain the service quality dimensions.
There is little doubt that, among these, SERVQUAL is the most popular, a fact
acknowledged even by its critics (e.g. Asubonteng et al., 1996). SERVQUAL has
been developed in a series of stages leading to consecutively more refined versions
(Parasuraman et al., 1985, 1988, 1991, 1994). In the most commonly used version
(Parasuraman et al., 1988),
service quality is calculated as the gap between customer expectations and
perceptions. The 22 items of this instrument are categorized into:
Reliability: The ability to perform the promised service dependably and
accurately.
Tangibles: The appearance of physical facilities, equipment, personnel and
communications materials.
Responsiveness: The willingness to help customers and to provide prompt
service.
Assurance: The knowledge and courtesy of employees and their ability to
convey trust and confidence.
Empathy: The provision of caring, individualised attention to customers.
3) Service quality and satisfaction
7/29/2019 Agri Clu Tura Lloan
35/57
There is very little doubt that there is a causal relationship between customer
perceived service quality and satisfaction. Nevertheless, there is an ongoing debate
in literature on the direction of Total Quality Management 227this relationship, i.e.
whether service quality influences satisfaction or vice versa. According to
Parasuraman et al. (1988), perceived service quality relates to long-term and global
evaluation of a service, whereas satisfaction is linked to evaluations of specific
service transactions. They pointed out those incidents of customer satisfaction from
their experiences with the provided service influence the perceptions of service
quality. On the other hand, other researchers (e.g. Cronin & Taylor, 1992; Spreng
&McKoy, 1996) have found that service quality is an antecedent of customer
satisfaction. Parasuraman et al. (1994) moderated this disagreement by attributing
the different perspectives on this issue to the global scope of perceived service
quality as opposed to the transaction-oriented nature of satisfaction. Research on
the relationship between quality and satisfaction in the internet services context is
again at its early stages. However, several scholars advocate that customer-
perceived internet service quality, either overall or specific dimensions,
significantly influences customer satisfaction (e.g. Jun et al., 2004; Lee & Lin,
2005; Long &McMellon, 2004; Van Iwaarden et al., 2003.
7/29/2019 Agri Clu Tura Lloan
36/57
RESEARCH METHODOLOGY
This chapter describes the research methodology adopted to achieve the objectivesof the study. It includes the scope of the study, research design, collection of data,
analysis of data and limitations of the study.
Scope of the study
The scope of the study is to get the first hand knowledge about the role of SBI in
granting role to agriculture sector. The scope is restricted to study the factors
affecting the perception and behaviour satisfaction of consumers while availing the
agriculture loan services in banks. This is done to avoid perceptual bias and for
providing objectivity to the study.
Research Design
The research design constitutes the blueprint for the collection, measurement and
analysis of data. It is the strategy for a study and the plan by which the strategy is
to be carried out.
Data Collection Methods
Primary Data
Primary data is that data which is collected for the first time. It is original in nature
in the shape of raw material. For the purpose of collection of primary data, a well
structured questionnaire was framed which was filled by the respondents. The
questionnaire comprises of close ended questions. In close ended questionsdichotomous, ranking, nominals scale, checklist questions and multiple choice
questions are used.
7/29/2019 Agri Clu Tura Lloan
37/57
Sampling design:
Sample size: 50 people who have taken any type of agriculture loan were
surveyed.,
Sampling Area: Ambala
Sampling technique: a probability sampling technique named stratified sampling
has been used in the research.
The Chief Objectives of this study are:
1. To find out the Role played by SBI in upliftment of farmers in
India.
2. The system and procedure of granting Loans to Farmers.
3. To analyze the benefits of Loans to Farmers
Limitations of the study
Sincere efforts have been made to collect authentic and reliable information from
respondents, however the report is subject to following limitations:
i. Some respondents were reluctant to give the information, so their responses
may be biased.
ii. Study was conducted in Ambala only. So the results of the study may not be
applicable in other areas.
iii. The factors which are taken in this research is not only the base to judge the
consumer behavior, some other psychological factors may slightly impact on
the same.
7/29/2019 Agri Clu Tura Lloan
38/57
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
4.1 Analysis of granting agriculture loan
Reply of Respondents No. of Respondents
Yes 50
No 20
(Source: Self prepared Questionnaire & Field Survey)
71%
29%
Yes
No
Interpretation:
Table 4.1 shows the analysis of granting agriculture loan. It shows that 71Percent
of Respondents were knowing about agriculture loan facilities. Only 29 Percent
respondents were not aware about loan facilities. It is reveals that majority of the
respondents were aware regarding agriculture loan facilities.
7/29/2019 Agri Clu Tura Lloan
39/57
4.2 Analysis about which financial institution or Bank people prefer
Reply of Respondents No. of Respondents
SBI 12
Co-operative Bank 8
Agricultural bank 20
Any other 10
24%
16%
40%
20%
SBI
Co-operative Bank
Agricultural bank
Any other
Interpretation
Agricultural banks are most preferred by the customers. The banks specialize for
the needs of the agricultural community and are usually based near their place.
After this SBI and associate banks are preferred because they also have tailor made
loans for them. Co-operative banks are also preferred due to their low rate of
interest.
For various types of loans, the interest rates are satisfactory for most of the
respondents. 24% of the respondents that the interests rates are higher in
comparison to other lenders like agriculture or co-operative banks.
7/29/2019 Agri Clu Tura Lloan
40/57
4.3 Analysis of from where get information about Agricultural loans
Reply of Respondents No. of Respondents
Televisions 3
Radios 4
Public meetings 28
Newspapers 7
Any Other 8
6%8%
56%
14%
16%
Televisions
Radios
Public meetings
Newspapers
Any Other
Interpretation
Public meetings like panchayats, meting with friends peers and fellow farmers and
camps like loan mela etc are the best source of information for the consumers.
Newspapers is better source of information than radio and television about the
loans.
4.4 Analysis of for how much loan you applied for
7/29/2019 Agri Clu Tura Lloan
41/57
Reply of Respondents No. of Respondents
1-5 Lacs 28
5-10 Lacs 16
10 Lacs and above 6
56%32%
12%
1-5 Lacs
5-10 Lacs
10 Lacs and above
Interpretation
In most of the cases, a loan of 1-5 lacs is applied by the consumers. There are very
few takers of loans above Rs 10 lacs.
7/29/2019 Agri Clu Tura Lloan
42/57
4.5 Analysis of reason for Loan
Reply of Respondents No. of Respondents
Farming tools (thresher, tractor etc) 33
Seeds 5
Pesticides, Fertilizers, etc 8
Any other 4
66%
10%
16%
8%
Farming tools (thresher, tractor
etc)
Seeds
Pesticides, Fertilizers, etc
Any other
Interpretation
In most of the cases, a loan is taken to buy farming tools like thresher , tractor etc.
7/29/2019 Agri Clu Tura Lloan
43/57
4.6 Analysis of satisfaction with the procedure of the bank in granting loan
Reply of Respondents No. of Respondents
Yes 39
No 11
78%
22%
Yes
No
Interpretation
39 of the total 50 respondents were satisfied with the procedure of bank loan.
7/29/2019 Agri Clu Tura Lloan
44/57
4.7 Analysis of satisfaction with the behavior of employees
Reply of Respondents No. of Respondents
Yes 36
No 14
72%
28%
Yes
No
Interpretation
36 of the total 50 respondents were satisfied with the behaviour of bank
employees. The bank employees are generally courteous to the respondents.
7/29/2019 Agri Clu Tura Lloan
45/57
4.8 Analysis of liking with the ambience of the bank
Reply of Respondents No. of Respondents
Yes 13
No 37
26%
74%
Yes
No
Interpretation
37 of the total 50 respondents were satisfied with the ambience of bank
7/29/2019 Agri Clu Tura Lloan
46/57
4.9 Analysis of problems encountered in receiving loan.
Reply of Respondents No. of Respondents
No 22
Yes
i) Documentation problems
ii) Guarantee problems
iii) Any Other
28
18
8
2
56%
44%Yes
No
Interpretation
28 of the total 50 respondents encountered problems while taking loan. In most of
these cases, documentation was a major problem since the farmers are generally
not very literate and hardly maintain documents.
7/29/2019 Agri Clu Tura Lloan
47/57
4.10 Analysis of if loan brought charges in farming technique
Reply of Respondents No. of Respondents
Yes 46
No 4
92%
8%
Yes
No
Interpretation
After taking loans, the farmer community is able to improve their farming
techniques as responded by 92% of the respondents.
7/29/2019 Agri Clu Tura Lloan
48/57
4.11 Analysis of satisfaction over the fact that S.B.I. takes 8.5-12.5% of interest
rate on agricultural loan.
Reply of Respondents No. of Respondents
Yes 38
No 12
76%
24%
Yes
No
Interpretation
The S.B.I. rating regarding agriculture loans is satisfactory, Only 12% of the
respondents were not satisfied by the bank.
7/29/2019 Agri Clu Tura Lloan
49/57
4.12 Liking of taking agricultural loan again
Reply of Respondents No. of Respondents
Yes 50
No 0
100%
0%
Yes
No
Interpretation
All the respondents had a positive feedback about taking a loan again and there
was not even a single respondent who replied in negative to the question.
7/29/2019 Agri Clu Tura Lloan
50/57
4.13 Analysis of rating of SBI
Reply of Respondents No. of Respondents
Highly Satisfied 8
Satisfied 20
Neutral 16
Dissatisfied 4
Highly Dissatisfied 2
Interpretation
The S.B.I. rating regarding agriculture loans is satisfactory, Only 12% of the
respondents were not satisfied by the bank.
16%
40%
32%
8%
4%
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
7/29/2019 Agri Clu Tura Lloan
51/57
FINDINGS AND SUGGESTIONS
Agricultural banks are most preferred by the customers. The banks specialize for
the needs of the agricultural community and are usually based near their place.
After this SBI and associate banks are preferred because they also have tailor made
loans for them. Co-operative banks are also preferred due to their low rate of
interest.
Public meetings like panchayats, meting with friends peers and fellow farmers and
camps like loan mela etc are the best source of information for the consumers.
Newspapers is better source of information than radio and television about the
loans.
In most of the cases, a loan of 1-5 lacs is applied by the consumers. There are very
few takers of loans above Rs 10 lacs.
After taking loans, the farmer community is able to improve their farming
techniques as responded by 92% of the respondents.
For various types of loans, the interest rates are satisfactory for most of the
respondents. 24% of the respondents that the interests rates are higher in
comparison to other lenders like agriculture or co-operative banks.
All the respondents had a positive feedback about taking a loan again and there
was not even a single respondent who replied in negative to the question.
The S.B.I. rating regarding agriculture loans is satisfactory, Only 12% of the
respondents were not satisfied by the bank.
7/29/2019 Agri Clu Tura Lloan
52/57
CONCLUSION
Banks play an important role in the improvement in agriculture sector. It is a duty
of government and banks to support the agriculture sector.
SBI takes a lot of initiative in providing loan facilities to the sector. Various
schemes are available for the farmers at very attractive interest rates.
Agricultural banks, which are especially meant for the purpose of extending loans
to the farmers are preferred over other options. Still SBI is able to have a mark.
The employees are generous in behaviour and have goof\d rapport with the
farmers, thereby have the confidence of the farmers. The farmers face some
difficulties over the issue of loan documentation.
Bad debts deter the banks in providing loans to farmers.
7/29/2019 Agri Clu Tura Lloan
53/57
BIBLIOGRAPHY
1. Pal Debdatta & Sapre Amey, How have Government Policies Driven Rural
Credit in India: A Brief Empirical Analysis, 1969-2009, IIMA, India, Research
and Publications, W.P.N 2010-12-02, December 2010, pp. 1-15.
2. Lekhi RK & Singh Joginder Agricultural Economics- An Indian Perspective,
Kalyani Publishers, New Delhi, 2010, pp.248-297.
3. Dutt Ruddar & Sundharam KPM, Indian Economy, S. Chand & Company
Ltd, New Delhi, 2009, pp. 490-519, 577-609.
4. Pratoyogita Darpan, Exam Oriented Series 1, Indian Economy, 2007-08, pp. 94-
95.
5. Golait Ramesh, Current Issues in Agriculture Credit in India: An Assessment,
Reserve Bank of India, Occasional Papers, Vol. 28, No.1, Summer 2007, pp.
79-89.
6. Sriram MS Productivity of Rural Credit: A Review of Issues and Some Recent
Literature, IIMA, Research & Publications, W.P.No.2007-06-01, June 2007,
pp. 1-20.
7. Kaur Janmeet & Kiranvir, Regional Rural Banks and Credit Flow to
Agriculture, in R. K. Uppal & Rimpi Kaur (ed.), Banking in the New
Millennium- Issues, Challenges and Strategies, Mahamaya Publishing House,
New Delhi, 2007, pp. 90-102.
8. Mohan Rakesh, Agricultural Credit in India- Status, Issues and Future
Agenda, Economic and Political Weekly, Vol. XLI, No. 11, March 18-24,
2006, pp. 1013-1023.
7/29/2019 Agri Clu Tura Lloan
54/57
9. Gulati Ashok & Bathla Seema, Institutional Credit to Indian Agriculture:
Defaults and Policy Options, National Bank for Agriculture and Rural
Development Mumbai, Occasional Paper 23, 2002, pp. 1-55.
10.RBI, Report on Currency and Finance, 2006-08, Reserve Bank of India,
Mumbai
11.RBI, Report on Trends and Progress of Banking in India, 2008-09, Reserve
Bank of India, Mumbai.
12.RBI, Statistical Tables Relating to Banks in India, 2008-09, Reserve Bank of
India, Mumbai.
13.RBI, Handbook of Statistics on Indian Economy, 2009-10, Reserve Bank of
India, Mumbai.
14.Government of India, Economic Survey of India, 2009-10, New Delhi.
15.www.sbi.com
16.www.google.com
17.www.wikipedia.com
18.Business World
19.Business Today
http://www.sbi.com/http://www.google.com/http://www.wikipedia.com/http://www.sbi.com/http://www.google.com/http://www.wikipedia.com/7/29/2019 Agri Clu Tura Lloan
55/57
QUESTIONNAIRE
Q.1 Have you ever taken agricultural loan?
Yes
NoQ.2 From which financial institution or Bank?
SBI
Co-operative Bank
Agricultural bank
Any otherQ.3 How do you get information about Agricultural loans?
Televisions
Radios
Public meetings
Newspapers
Any OtherQ.4 for how much loan do you applied for?
1-5 Lacs
5-10 Lacs
10 Lacs and aboveQ.5 The reason for Loan
Farming tools (thresher, tractor etc)
Seeds
Pesticides, Fertilizers, etc
Any otherQ.6 Are you satisfied with the procedure of the bank in granting loan?
Yes
No
Q.7 Are you satisfied with the behavior of employees?
Yes
NoQ.8 Do you like the ambience of the bank?
Yes
NoQ.9 have you encountered any problem in receiving loan.?
No 22Yes
iv) Documentation problemsv) Guarantee problemsvi) Any Other
28
18
8
2
7/29/2019 Agri Clu Tura Lloan
56/57
Q.10 Dos loan benefits bring charges in your farming technique?
Yes
NoQ.11 S.B.I. takes 8.5-12.5% of interest rate on agricultural loan, are you satisfied with this?
Yes
No
Q.12 Would you like to take agricultural loan next time?
Yes
No
Q.13 How many times do you taken loan
1
2
3
Many
NeverQ.14 How will you rate SBI
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
7/29/2019 Agri Clu Tura Lloan
57/57