A study of Agricultural credit by Commercial Banks in India: A case study of Canara Bank

Abstract

Agricultural credit possesses its usefulness to the farmers, lenders and extension workers. It is an important prerequisite for agricultural growth. It is considered as one of the most basic inputs for conducting all agricultural development programmes. Agricultural policies have been reviewed from time to time to provide adequate and timely availability of finance to this sector. The economic principles of farm financial management facilitate in obtaining control over capital and its efficient use. The investment analysis pertaining to income, repayment capacity and risk bearing ability determine the amount of capital a farm business can profitably and safely use. Hence, the farmer can determine his credit worthiness and can put forth his loan application with confidence to lender. The present study is an attempt to analyze the agriculture credit by commercial banks. This study is based on secondary data. The analysis was made by the application of trend analysis. Major finding of the study is that agriculture credit by Canara Bank has increased to reach the target which given by RBI.