Agricultural Credit System Ebook for NABARD Grade A, Check Here

Saloni Singhal

4 months ago

Home » Regulatory Exams » Agricultural Credit System Ebook for NABARD Grade A

The Agricultural Credit System is one of the important topics under the ESI and ARD sections of both Phase 1 and Phase 2 in the NABARD Grade A Exam. Therefore, for your convenience, we have covered the topic in complete detail. Every mark is of utmost importance in the exam, so it becomes extremely necessary that you cover the topics given in the syllabus with utmost sincerity. We have compiled this eBook covering all necessary aspects of the Agricultural Credit System, so do not forget to download the Agricultural Credit System Ebook for NABARD Grade A.

What Does Agricultural Credit System Mean?

Agricultural credit is essentially needed for agricultural growth. From time to time, agricultural policies have been reviewed to give timely and adequate credit availability to the agriculture sector. The rural credit system calls for more attention as most of the rural families in India live with inadequate savings to finance farming and other economic activities. Lack of simultaneity between expenditure and income realization, coupled with huge agricultural capital investments adds to the misery. The institutionalized credit system is critical to agricultural development. In India, commercial banks, regional rural banks, and cooperative banks have adopted a multi-agency approach to credit the agricultural sector.

Attempt FREE NABARD Grade A Mock Test

Agricultural Credit System – Types of Credit

Based on tenure and the purpose of the credit requirement, agricultural credit is classified under three categories –

» Short-term Credit – Refers to the credit required by farmers to meet their short-term needs (purchasing fertilizers and HYV seeds, meeting expenses on social and religious ceremonies). The tenure of the loan usually does not exceed 15 months and is repaid after the harvest.

» Medium-term Credit – These loans are usually to meet financial requirements like purchasing agricultural equipment or cattle, improving the land, digging up canals, etc. The tenure can go up to 5 years.

» Long-term Credit – This refers to loans taken to purchase a tractor, an additional agricultural land, or to make permanent improvements in the land. These loans are taken for a period of more than 5 years.

There are several types of agricultural credit systems, each with its own characteristics and advantages. Here are some of the main types:

Formal Agricultural Credit:

Commercial Banks: Commercial banks offer loans to farmers for various agricultural purposes, including crop cultivation, livestock rearing, and equipment purchase. These loans often come with interest rates and are subject to collateral requirements.

Cooperative Banks: Cooperative banks are owned and operated by agricultural cooperatives or farmers themselves. They provide financial services specifically tailored to the needs of local farmers, often at more favorable terms compared to commercial banks.

Regional Rural Banks (RRBs): RRBs are financial institutions created to cater to the credit needs of rural and agricultural areas. They are jointly owned by the central government, state governments, and commercial banks.

Scheduled Banks: In many countries, scheduled banks are required by law to allocate a certain percentage of their lending portfolio to agriculture. This helps ensure a consistent flow of credit to the agricultural sector.

Informal Agricultural Credit:

Moneylenders: In rural areas where formal banking services are limited, moneylenders often provide credit to farmers. However, these loans may come with exorbitant interest rates, making farmers vulnerable to debt traps.

Traders and Input Suppliers: Some farmers obtain credit from agricultural input suppliers or traders in exchange for selling their produce to these entities. This type of credit is known as input credit and is common in certain agricultural supply chains.

Family and Friends: Farmers may also rely on informal sources like family members and friends for financial support in times of need.

Government Agricultural Credit:

Government Loans and Subsidies: Many governments offer agricultural credit programs, providing loans to farmers at subsidized interest rates or with relaxed collateral requirements. These programs are aimed at promoting agricultural development and improving farmers’ livelihoods.

Agricultural Development Banks: Some countries have specialized agricultural development banks that exclusively focus on providing credit to farmers and promoting rural development.

Microfinance Institutions:

Microfinance Institutions (MFIs): MFIs offer small loans and financial services to rural and low-income individuals, including farmers. These institutions often have a strong presence in rural areas and provide credit for agricultural purposes.

Self-Help Groups (SHGs):

Self-Help Groups: These are community-based organizations formed by rural women or men to collectively save money and provide credit to their members. SHGs empower farmers to access credit within their own communities.

Crop-specific Credit:

Warehouse Receipt Financing: Farmers can obtain credit by using warehouse receipts as collateral. These receipts represent the stored agricultural produce and can be used to secure loans.

Related Links	Related Links	Related Links
NABARD Grade A Apply Online	NABARD Grade A Eligibility	NABARD Grade A Salary
NABARD Grade A Previous Year Cut Off	NABARD Grade A Syllabus & Exam Pattern	NABARD Grade A Exam Date
NABARD Grade A Admit Card	NABARD Grade A Result	NABARD Grade A Selection Process

Agricultural Credit System – Sources of Credit

Agricultural credit sources in India can be classified broadly into Non-institutionalized and Institutionalized sources.

» Non-institutionalized Sources of Credit

Money Lenders
Commission Agents and Traders
Relatives
Landlords

» Institutionalized Sources of Credit

Co-operative Societies
Land Development Banks
Commercial Banks
Regional Rural Banks
Government

Also, check out the below-given links

Related Links	Related Links	Related Links
NABARD Grade A Study Material	NABARD Grade A Preparation Strategy	NABARD Grade A Previous Year Papers
NABARD Grade A Study Plan	Government Schemes for NABARD Grade A	NABARD ESI ARD Notes

How to Prepare for the NABARD Grade A Exam?

If you are a candidate who has never prepared for the NABARD Grade A Exam before and is scared of the Agriculture section that is asked in the exam, then you must check out the following success stories:

Success Story of Anantha Giri Padmanabhan
Success Story of Himanshu Baliyan

Special Note: Any Graduate candidate from any discipline can apply for this exam. With a systematic way of preparation, aspirants can smoothly get good marks in the Agriculture section.

Related Links	Related Links	Related Links
NABARD ARD Free Notes	Krishi Vigyaan Kendras NABARD Notes	Fisheries ARD Notes
NABARD ESI Preparation Tips	Basics of Agriculture NABARD Notes	Agricultural Markets NABARD Notes
Agriculture Finance ARD Notes	Life of NABARD Grade A Officer	NABARD Grade A Books

Ebooks Specifically for NABARD Grade A Exam 2023: Download for FREE

Download FREE Ebooks on Government Schemes for all Regulatory Exams: IRDAI, RBI, NABARD, SIDBI, SEBI, IFSCA

FREE Ebooks on General Awareness, ESI, FM & Miscellaneous Topics for all Regulatory Exams: IRDAI, RBI, NABARD, SIDBI, SEBI, IFSCA – Download

The syllabus of all the regulatory exams is somewhat similar, so practicing and learning from other exam-specific ebooks are also beneficial in the preparation. Here, we have compiled all the latest ebooks that will help you ace the exam.

Download FREE Ebooks on QRE (Quantitative Aptitude, Reasoning, English) for all Regulatory Exams: IRDAI, RBI, NABARD, SIDBI, SEBI, IFSCA

Download all the ebooks for FREE and enhance your preparation.

Quantitative Aptitude Ebooks

Reasoning Ebooks

English Language Ebooks

Preparing for Regulatory Exams? Need regular updates of CA, Notifications, Free Ebooks, YT Sessions, and More, then Join Our Regulatory Whatsapp Channel.

If you are preparing for Regulatory Exams, then do not forget to check out all the blogs on the regulatory exams. Check Regulatory Exam Blogs.

Get Daily FREE Material for RBI Grade B, NABARD Grade A, SEBI Grade A, IFSCA Grade A, and SIDBI Grade A, IRDAI Assistant Manager – Join Oliveboard’s Regulatory Exam Telegram Channel

Check out all the videos for RBI Grade B, NABARD Grade A, SEBI Grade A, IFSCA Grade A, and SIDBI Grade A, IRDAI Assistant Manager- Subscribe to Oliveboard’s Regulatory Exam Youtube Channel

Related Links	Related Links
RBI Grade B Notification	IRDAI Assistant Manager Notification
SEBI Grade A Notification	IFSCA Grade A Notification
SIDBI Grade A Notification	PFRDA Assistant Manager Notification

DOWNLOAD THE RBI, NABARD, SEBI Prep App FOR ON-THE-GO EXAM PREPARATION
The app provides comprehensive study material in the form of online courses to ace these examinations. The study material ranges from online LIVE classes, video lectures, study notes, revision sessions, past year papers, topic tests, the objective plus descriptive mock tests, mock interviews, and much more.

Saloni Singhal

Hello there! I’m a dedicated Government Job aspirant turned passionate writer & content marketer. My blogs are a one-stop destination for accurate and comprehensive information on exams like Regulatory Bodies, Banking, SSC, State PSCs, and more. I’m on a mission to provide you with all the details you need, conveniently in one place. When I’m not writing and marketing, you’ll find me happily experimenting in the kitchen, cooking up delightful treats. Join me on this journey of knowledge and flavors!

Oliveboard Live Courses & Mock Test Series