CREDIT AND FINANCE
Their are many credit schemes to suit to the requirements of individual farmer. Thus, loans and advances are extended against pledge of bank deposits receipts, Life Insurance Policies, fully paid shares and debentures, National Savings Certificates. Kisan Vikas Patras, Indira Vikas Patras, Unit Trust of India Certificates, etc. Banks also extends loans against pledge of Jewels to Agriculturists and others. Normally 25% margin is maintained for all the advances. However, in specific cases like advances against National Savings Certificates, Kisan Vikas and Indira Vikas Patras, higher margin is stipulated as these instruments are not encashable on demand but can be encashed only on the date of maturity. The rate of interest is subject to Reserve Bank of India directives from time to time.
Banks
also extends finance to the Farmers for cultivation of crops, minor irrigation,
land development, farm mechanisation, Horticulture and plantation and allied
activities like diary, poultry, goad and sheep rearing, fishery, prawn culture,
piggery,
Short term loans are sanctioned for raising crops, for cultivation of traditional plantations like tea, coffee, rubber and spices for purchase of agricultural implements and machinery for development of irrigation, for reclamation and land development, etc. Loan facility is also available for dairy development, poultry farming, purchase of electric motor / oil engine with pumpsets, purchase of tractors, trailors and other agricultural implements.