Agricultural Sector Financing and Challenges for Bankers

Abstract

The paper is a part of extensive research in the area of vegetable supply chain and aims at the constraints faced by bankers in credit of agricultural loans. The core objective behind this is to know the credit distribution among the different players of agricultural sector and to determine the effect of categories of loan applicants upon the factors responsible for the approval of agricultural loans. The study is descriptive in nature and is carried out with the logic of the support of the Reserve Bank of India (RBI) to agriculture driven Indian economy based on banker’s opinion. As per the study it is found that banks need to make the process easier for farmers as well need to develop a communication link to always make them update with the information about the developments taking place with support of banks.

Keywords: Bank, Agriculture, Loan, Credit, Bankers, Demand.

JEL classification: B21, C25, C35, C42, G21, G23, Q14.