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PJ Project

Accounting and Finance (Chhatrapati Shivaji Maharaj University)

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A
Project Report
On
A STUDY OF AGRICULTURAL LOAN WITH
RESPECT TO FARMERS FROM SBI BANK,
OSMANABAD

BY
Miss. Priyanka Shailendra Jadhav
Under the guidance of
Prof. Pratibha Rasal

Submitted to
Savitribai Phule Pune University
In Partial Fulfilment Of the requirement for the award of thedegree of
Master of Business Administration (MBA)

JSPM Narhe

Through JSPM Narhe Technical Campus, Rajashri Shahu School of Business

Studies, Narhe Pune.
Batch 2022-23

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DECLARATION

I, the undersigned, hereby declare that the Project Report entitled " PRIYANKA
SHAILENDRA JADHAV" written and submitted by me to the Savitribai Phule
Pune University in partial fulfillment of the requirements for the award of degree
of Master of Business Administration under the guidance of Prof.PRATIBHA
RASAL. is my original work and the conclusions drawn therein are based on the
material collected by myself.

PLACE: PUNE STUDENT NAME

DATE: PRIYANKA.S. JADHAV

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ACKNOWLEDGEMENT

The satisfaction of completion of any successful task is

incomplete without mentioning the name of people who made it encouragement
crowned our efforts with success. I have a pleasure in submitting the project
report & I take this opportunity to express my sincere gratitude to all those who
have helped me in this completion of this project report The MBA curriculum
given me a unique opportunity to be in association with one of the largest banks.
I am extremely grateful to Mr. SOMNATHA MANE (Branch manager) of SBI
BANK. for giving me the opportunity to work on the project. I am extremely
grateful to Mr. SOMNATHA MANE. (Branch Manager) for giving me
opportunity constant encouragement, support & guidance. I express my heartily
gratitude to my project guides, for providing me all the facilities required in
completing this project. My heartily gratitude to all those who have directly or
indirectly given assistance in making this project easier & possible.

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INDEX

Ch No Chapter Page No

1 Executive Summary 1
2 Introduction 3
3 Bank Profile 7
4 Introduction to agriculture loan 16

5 Objective of study 36

6 Data Analysis and Interpretation 38

7 Findings 54
8 Suggestion 56
9 Conclusion 58

10 Bibliography 61

11 Annexure 63

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CHAPATER-1
EXECUTIVE SUMMERY

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EXECUTIVE SUMMARY

A key topic that plays an important role in understanding and assessing the overall capacity
and performance of a given bank is to study credit rating techniques for loans and loans. As a
result, this topic was selected as a summer project.
This project was carried out at the SBI Branch WASHI. Managing Credit Management Loans
and loans technology is a very broad subject and a very important concern in the banking sector
and it is impossible to understand all the concepts at one time.
The purpose of this study is to understand the data of recent years. Data relating to the progress
of the bank in various sectors of the priority and non-priority sectors and the amount of the
proportional increase in the duration of the loan. The next part of the report is devoted to
knowledge about banks. Includes the history of the SBI and the services provided by the bank.
Then briefly introduces the SBI and provides the next part of the report which includes the
history, management, objectives and financial situation of the bank.
The following sections provide information on loans and credit facilities provided by bank.
This section covers the different types of loans and their Interest Rates Offered by Bank, loans,
the procedures for recovering them, the actual locations of the banks and the recommendations
in the borrowing area, as well as the co-ordinates of the banks.
Various suggestions and suggestions for improvement. Researchers used financial statements,
annual reports and financial documents as baseline data for conducting research activities. The
annual report for the last five years has been taken into account for the research.

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CHAPATER-2
INTRODUCTION

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Selection of the topic: -

(1.1) Regarding the topic selected by me for study purpose, I want to quote following reasons
why this specific topic is selected.

A) History of Agriculture: -
10,000 years ago, the man invented agriculture. A primitive form of agriculture was
shifting cultivation crops. After few years when these plots lost fertility & heavily
infected with grass & soil born pests, the cultivator would shift to new site. Agriculture
is the backbone of Indian economy.

B) Agriculture in India: -
Agriculture is a prime source of live hood of the population in India.

A flourishing Agriculture sector is far more important for the development of Indian
economy.

Since farming is less a business than a tradition in India. Even at this stage about 80%
population lives in rural areas directly & directly or indirectly depends on agriculture
for its livelihood.

The surplus generated by this sector would help Indian economy to reach the “Golden
Stage”.

It supplies the necessities of life. Today agriculture is feeding 100 million people.

India is the only country having all types of soil & climate conditions suitable for
growing variety of crops.

About 85 crores of people which further multiplying at the rate 2.5% per annum
depends on agriculture sector.

60% of the Indian population is engaged in agriculture & agro-based industries

(1.2) Objectives of the study: -

• The study is undertaken for the following objectives:

• To study various aspects of agriculture loan.

• To study the perception of farmers towards SBI BANK agricultural loan.

• To find out the awareness of farmers about various types of financial products
for agriculture.

• Feedback from the farmers who have borrowed loan from SBI. BANK.

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(1.3) Importance of topic: -

• The substantial growth of financial sector in India after globalization has

brought many sectors under its benefits. The prime sectors are real estate,
housing, Industrial development. It is already discussed & proved that
agriculture sector in India is important; require lot of technological
developments to meet the challenges of this country.

• All the developments that is infrastructural, technological require financial

Investment. Without financial support & investment agricultural
developments are not at all possible.

• A major sector like agriculture in our country if kept underdeveloped only

because of lack of finance, no justice is made to the cultivators & a major
population which depends on this sector as a source of livelihood.

• As per the directives of Reserve Bank of India many of the financial institutes
are offering their support to agriculture sector. Large number of investments
are made in the same.

The selected topic is that’s why important as it deals with the major sector of
this Country i.e. Agriculture. Definitely the findings & outcome of the study
will be Important & useful for me as a student of management as well as
Bank of Maharashtra selected for the study purpose.

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(1.4) Scope of the study:

The scope of the study lies in dimensions.

a) Scope for the student

The student studying the topic will get an exposure to the agriculture sector, financial procedure
to agriculture credit finance procedure.

(b) Scope for the society in general

As the agriculture sector and the farmers are the part of the society, the study Itself & the findings
as such will be useful for the society. The society in general, & farmers can be well understood in
terms of the agriculture finance procedure.

(1.5) Limitations of the study

The study is complicated with the following limitations:

Only one bank is selected to study so there is no comparative analysis .

The scope is limited for OSMANABAD district & specifically one branch. i.e WASHI branch.

The time available for the purpose of study is very less i.e., twenty days only. Mostly secondary
data is referred than the primary data for the study is limited.

Farmers are uneducated so it difficult to explain them about the product.

(1.6) Research Methodology Research Definition

Research is scientific activity in which decision is made & problem is solved.

Research Methodology
The method or framework within which the research is to be done is called Research
Methodology. Types of Research of my study is Exploratory Descriptive procedure of SBI.
BANK

Types of Research of my study is

Exploratory
Descriptive procedure of SBI BANK

Data Collection
(1) Primary Data:-
In the form of feedback of the farmers collected through questionnaire.

(2) Secondary Data:-

All the data is collected from the books, publication, records, by the bank

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CHAPTER-3
BANK PROFILE

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IFSC CODE: SBIN0004451

BANK NAME: STATE BANK OF INDIA

BANK ADDRESS: Washi, DIST Osmanabad Maharashtra.

DISTRICT: Osmanabad

STATE: Maharashtra

PHONE NUMBER: 7875559939

BRANCH CODE: 004451

TIMING: Monday to Friday 10AM to 4PM Saturday: 10AM to 4PM

(Except 2nd and 4th Saturday)

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SBI BANK HISTORY

• The origin of the State Bank of India goes back to the establishment of the Bank
Calcutta in Calcutta on 2 June 1806

• Three years later the bank received its charter and was re-designed as the Bank of Bengal (2
January 1809).

• It was the first joint-stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843)
followed the Bank of Bengal.

• These three banks remained at the apex of modern banking in India till
their amalgamation as the Imperial Bank of India on 27 January 1921.

• When India attained freedom, the Imperial Bank had a capital base (including reserves)
of INR 11.85 crores, deposits and advances of INR 275.14 crores and INR 72.94 crores
respectively, and a network of 172 branches and more than 200 sub-offices extending all
over the country.

• The All India Rural Credit Survey Committee recommended the creation of a state-
partnered and state-sponsored bank by taking over the Imperial Bank of India. Thus, an act
was passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July
1955.

• Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the
State Bank of India to take over eight former State-associated banks as its subsidiaries
(later named Associates).

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Vision –
To become synonymous with an inclusive idea of wealth creation with benefits having a far-
reaching impact.

Mission –
To provide unmatched products, incisive expertise and premium privileges with focus on Client
Experience and Quality in Service Delivery.

LOGO

State Bank of India – Other Details

• Largest Indian Bank with 1/4th market share
• A Fortune 500 company
• serves over 45 crore customers
• Have over 22,000 branches, 62617 ATMs/ADWMs, 71,968 BC outlets
• Have various subsidiaries i.e. SBI General Insurance, SBI Life Insurance, SBI
Mutual Fund, SBI Card, etc
• Headquarters – Mumbai
• Current Chairman – Dinesh Kumar Khara

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SBI Board of Directors

SBI has one chairman who is the head of the Board of Directors and 4 Managing
Directors.

Board of Directors

Chairman Dinesh Kumar Khara

Managing Director Ashwani Bhatia

Managing Director Swaminathan J.

Managing Director C.S. Setty

Managing Director Ashwini Kumar Tewari

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SBI Headquarters
Offices Location and Number

Corporate Centre (Mumbai)

Local Head Offices 17

Zonal Offices 101

Foreign Offices 208 in 36 countries

Subsidiaries of State Bank of India

Subsidiaries and Joint Ventures

SBI Capital Markets Ltd.

SBI General Insurance Co. Ltd.

SBI Cards & Payment Services Ltd.

SBI Global Factors Ltd.

SBI Funds Management (P) Ltd.

SBI DFHI Ltd.

SBI Life Insurance Co. Ltd.

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some other information:

(a) Internet Banking:

SBI BANK offers following services through banking & people these facilities by using internet
connectivity.
• Account balance inquiry.
• Statement of account.
• View all accounting details for all types of accounts.
• Check status & inquiry.
• Check book queries.
• E-payment of tax

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(b) Mobile banking:-

SBI BANK. offers mobile banking services with its new technology, Maha Mobile’. It is a mobile
banking application that works on a safe & secured menu base interface provided through J2ME
technology. The customer can carry out inquiry functions, transfer of funds, e-commerce transactions
by using mobile application installed on customers mobile instruments.

(c) Facilities under Mobile Banking: -

• Balance inquiry.
• Add beneficiary.
• Funds transfer- within customer’s own account
• Funds transfer- to any other account within SBI Bank
• View of mobile banking transaction log.
• Change of application password.

(d) Computerization: - All the branches of the bank is fully computerized including rural
branches.

(e) Data centre: - The bank has its own data centre at washi to take care of the IT Processing
requirements with disaster recovery site in Hyderabad

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(f) ATM Network: -

The bank expanded ATM network from 505 to 545 ATMs during 2009-10. Bank has entered into
collaboration with VISA for issue of debit cards to its customers. The average hits per day have
increased from 37 to 91 per year. The bank has also joined national financial switch (NFS) & MITR
network for broadening its own network

(g) Networking: -
The bank has established its own corporate network pdccbank.co.in. The network was restructured to
take care of the latest IT 769 locations, 725 branches, regional offices, circle offices .Applications like
CBS, ATM Networking, RTGS, DEMAT, INTRANET, credit risk rating, online tax collection system
etc. are put to use through pdccbank.co.in

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CHAPTER-4
INTRODUCTION TO AGRICULTURE LOAN

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Agriculture:-

Agriculture is most important enterprise in India. It is a very broad term comprising all aspect of
production. It provides food for population, fodder for livestock & fulfils needs like Fiber, Fuel, timbre,
wood & Raw Material to various industries.

Agricultural Finance: -
The funds are required for the agriculture & for its allied activities. It Provided financial assistance to
various purposes or agriculture operation for short & medium periods like minor irrigation, and
development, soil conservation, farm mechanization, plantation & horticulture, cold storage & other allied
activities.

Direct Agriculture loans: -

It means short term production & investment loans provided directly to farmers for agriculture purposes.
This would also include such loans provided directly to farmers for agriculture purposes.

Need of agriculture finance: -

2/3rd population depends on agriculture. Low growth in agriculture output results in rise in food prices.
Majority of the poor are farmers, a labour & casual labour therefore for reduction ultimately & elimination
of poverty. Agriculture has a significant share in GDP. If GDP is low then overall GDP is fall down credit.
Money Enders are main sources of credit. They were most convenient and easiest source. his administration
as simple and flexible. The Indian government launched the three- tier banking structure in India. At the
apex is

NABARD at the middle level are the urban co-operative banks (UCBS) and a few public sector banks
(PSBS); and at the base are Primary Agriculture credit societies (PACS).
• NABARD
• UCBS, PSBS
• PACS

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Finance in villages is of two types: -

1. Agricultural finance (credit)
2. Non-Agricultural finance

Agricultural credit is of two types: -

1. Production credit
2. Consumption credit

(1) Production Credit: -

(a) Short term: -

• Loans for 15 to 18 months
• Loans for meet daily working requirements
• cash components
• kind component: co-operative marketing societies.

(b) Medium term: -

• Loans for 15months to 5 years.
• NABARD gives loan for 18 to 7 years.
• Creating capital asset
• Purchase livestock, machinery, equipment’s

(c) Long Term: -

• 5-7 YEARS
• Land fencing mechanization construction of farm house, storage facilities

3)Consumption Credit: -
It is basically for survival of farm families SBI Bank
gives revised margin & security norms for agriculture.

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Sr No Types of credit Loan amount Margin

A Crops loans & other i. Up to Rs 50000/- No Margin
short-Term loans ii. Over Rs 50000/- 15 to 20% (depends
quantum of finance)

B Term Loans i. Up to Rs 50000/- No Margin

ii. Over Rs 50000/- 15to 20%

2 Security norms

C Crop loans & other short- i. Up to Rs 50000/- Hypothecation of crops.

Term loans ii. Over Rs 50000 Mortgage of land &
third-party guarantee.

D Term loans i. Up to Rs 50000/-

ii. Over Rs 50000/-

The agriculture loans offered by SBI Bank. can be categorized into the
following types:
1) Kisan Credit Card
2) Agriculture Gold Loan
3) Minor Irrigation for Agriculturists
4) Farm Mechanization for Agriculturists
5) Animal Husbandry
6) Horticulture
7) Financing Farmers for Land Purchase
8) Financing Two Wheelers to Farmers
9) Vermicompost
10) Layer poultry
11) Sprayer
12) Shade net Farming
13) Solar pump
14) Dairy
15) Farmhouse construction

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Kisan Credit Card

Objective
To provide timely and adequate credit to farmers to meet their production credit needs (cultivation
expenses) besides meeting contingency expenses and expenses related to ancillary activities through
simplified procedure facilitating the borrowers for availing loans as and when they need.

Purpose
Cultivation of crops Meeting the short-term credit needs of farmers for crop production and allied
activities etc. Maintenance of farm equipment’s etc.

Eligibility
Agriculture borrowers having good track record for the last 2 year ( i.e. maintaining standard loan
accounts)
Creditworthy new borrowers can also be financed.

Interest Rate
As applicable from time to time.

Amount
As decided by District Technical committee & limit worked out for the purpose.

Security
Mortgage of land. Hypothecation of crop/Assets.

Repayment
Revolving credit facility for 3 years.
Coinciding with harvesting of crops-season/marketing of produce.

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Agriculture Gold Loans

Objective
To enables farmers to meet their short-term agricultural credit needs i.e. both for crop production
needs and also for meeting investment needs.

Purpose
Agri gold loan availed has to be invested by the borrowers either for meeting crop production
expenses and/or for creation of assets to be used In his farming operation or allied agricultural
activities like dairy, Poultry, fisheries etc.

Eligibility
Any person engaged in agriculture or allied activities as well as persons engaged in activities
permitted by RBI to be classed under agriculture. It is not necessary to insist for land record extract or
physical inspection of the farm before sanction of gold loans.

Margin
30% on price of gold (18,22 & 24 carat purity) less margin. The price of the gold is advised by LHO
at monthly interval.

Repayment
Cash Credit / Overdraft : Like KCC, it is a running account for a period of 3 years, subject to review
(outstanding Vis-à-vis advance value of the ornaments pledged) at annual interval.

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Minor irrigation for Agriculturist

Purpose
Digging of new wells, revitalization of existing well, purchase of oil engine, electric motor, pump set
installation of pipe line, sprinkler, irrigation, drip irrigation, tube well, bore well, etc.

Eligibility
Agriculturist who owns agricultural land.

Amount
For new dug wells as per the NABARD Unit costs for equipment’s /estimates.

Security
Mortgage of land,
Hypothecation of movable assets and guarantors.

Repayment
Depending upon the repaying capacity 7 to 11 years.

Other Terms & Conditions

Proposed well should be in white watershed area. It should not be in dark watershed area

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Farm mechanization for Agriculturist

Purpose
Purchase of Tractors/Power tillers Purchase of Harvesters Purchase of Threshers & other farm
implements

Eligibility
Agriculturist who owns at least 8 acres of Irrigated land. The Tractor should get at least 1500 hours of
work in a year.

Amount
As per cost of machinery

Security
Hypothecation of Tractor/trolley and accessories, Mortgage of land.

Repayment
7 to 9 years.

Other Terms & Conditions

Comprehensive insurance of machinery with bank clause

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Animal Husbandry

Purpose
Purchase of Cows/Buffaloes Poultry- Broiler Farm, Layers Farm, Hatchery Sheep/Goat Rearing
Construction of Byre, Purchase of Machinery Working Capital Requirements.

Eligibility
Agriculturist, agri. Labor and / or those who have necessary expertise.

Amount
Animal cost - As per NABARD unit costs Others- as per the project.

Security
Hypothecation of Animals/Plant Machinery to be purchased Mortgage of land.

Repayment
4 to 5 years with suitable instalments.

Other Terms & Conditions

Insurance of all animals is essential

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Horticulture

Purpose
Cultivation of fruit crops-mango, Pomegranate, Grapes etc.

Eligibility
Agriculturist with adequate provision of irrigation

Amount
As per NABARD Unit costs/ Project

Security
Mortgage of land. Hypothecation of crops.

Repayment
Within 15 years

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Financing farmer for land purchase

Purpose
For the cultivation of agriculture crop and producing food

Eligibility
A person should be a farmer, dairy owner etc.

Amount security
As per NABARD Unit costs/ Project

Repayment
Within 15 years.

Terms and conditions

Applicant farmer may encourage to purchase the land at one place and not in fragment holdings to
step up productivity and save production expenses

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Financing Two Wheelers to Farmers

Purpose
For supervising agriculture operations or effective management of farm or estate and for
transportation of agricultural produce or input, labour, etc.

Eligibility
A person should posses a valid driving license or engage driver possessing valid driving license

Amount security
As per the cost of machinery

Repayment
Within a period of 5-6 years

Term and condition

KYC norms to be followed scrupulously

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Vermicompost

Purpose
It enhances soil fertility physically, chemically and biologically

Eligibility
Small farmer, marginal farmer, association of person etc. are desirous of taking up the activity on
commercial basis Amount Up to 1.60 lakh

Repayment
Loan to be repaid in monthly/quarterly/half yearly/yearly instalment in max 7 year with moratorium
period of maximum 12 months

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Poultry Farming

Purpose
Construction of brooder/grower and layer sheds, feed Godown, labour quarters etc.

Eligibility
The loan can be available by an individual who has experience in poultry farming and has land for the
construction of poultry sheds. s

Amount
Up to 1 cr Repayment Within 5 years (in bi-monthly instalment) 38 Fisher

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Fishery

Purpose
For fish culture, boat loan, construction/deepening/widening/desilting of pond, purchase of
fingerlings, equipment, manure, feed and labour inputs etc.

Eligibility
All professional fisherman and farmer with knowledge in pisciculture

Amount security
For loan up to Rs. 1 lakh. -Nil For loan above Rs. 1 lakh-Land mortgages

Repayment
Maximum 48 months 39

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Setting up Agri clinic and Agri Business Centre

Purpose
To provide expert services and advice to farmer on cropping practices, technology, crop protection
from pest and disease, market trends, and prices of various crop, etc.

Eligibility
Graduate in agriculture from State and central universities and institutions recognized by ICAR/UGC

Amount security
Individual activities Rs.20 lakh Group activities Maximum of Rs. 100 lakhs.

Repayment
5 to 10 years

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Dairy Farm

Objective
To improving quality production of milk at the farm level.
To promote bulk financing in agriculture sector priority sector lending.

Purpose
For purchase of milch cattle and machines, utensils, construction of sheds, etc.

Eligibility
A milk producer co-operative society that is affiliated to the district milk union.

Amount
Maximum limit is Rs. 10 Lakh

Repayment
5 Years

Interest Rate
As applicable to direct agriculture loans.

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Cent solar

Purpose
To set up decentralized ground/ Stilt Grid connected Solar or other Renewable Energy based Power
Plant of capacity 500KW to 200MW

Eligibility
Individual farmer/ group of farmer/ co-operative/Water User Associations/etc.

Amount
Up to 3 lakhs Above 1 lakh

Repayment
Within 10 years (including moratorium max 12 month

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Shade net farming

Purpose
Construction/erection of green houses, poly house, shade net etc., purchase and installation of
necessary component and working capital

Eligibility
Farmers, Groups of farmers SHGs, JLGs, Corporates including farmers producer companies of
individual farmer, partnership firms and cooperatives of farmers directly engaged in agriculture and
allied activities

Amount
Up to 3 lakhs

Repayment
Maximum 7 years including moratorium of 3 to 12 month

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Construction of Farmhouse Loan

Purpose
Construction of farmhouse on agriculture land to facilitate farmer to have dwelling u it at farm which
may also take care of other requirement such as shortage of agriculture produce and farm implement,
cattle shed drying yard etc. for effective supervision and farm management.

Eligibility
A person/s engaged (singly or jointly) in agriculture and allied activities. Farmer having minimum
irrigated land holding of 2,5 acres, etc. Age at loan maturity should not exceed 75 years.

Amount
Up to Rs. 10 lakhs

Repayment
Within 15 years, as per the instalments.

Other terms and condition

The valuation certificate be obtained from respective registrar/ Sub-Registrar of area to ascertain the
value of land

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CHAPTER-5
OBJECTIVE OF STUDY

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Objectives of the Study:

1. The study is undertaken for the following objectives:

2. To know various aspects of agriculture loan

3. To study the perception of farmers towards SBI agricultural loan.

4. Rate of interest of agriculture loan in SBI as

5. compare to other financial institutions

6. Feedback from the farmers who have borrowed loan from SBI BANK

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CHAPTER-6
DATA ANALYSIS AND INTERPRETATION

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Kisan Credit Card

Sr No Year Loan in cr
1 2018-19 2.5
2 2019-20 3.10
3 2020-21 3.20

kisan credit card

6

0
2018-2019 2019-2020 2020-2021

Series 1 Column1 Column2

Explanation: -
The above chart shows that the amount of loan for KCC is increased than last years. In 2018-19 it was
2.5 crore, in2019-20 it was 3.10 crore and in 2020-21 it increases to 3.20 crore. Hence the amount of
loan is increased.

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Minor Irrigation

Sr No Year Loan in cr
1 2018-19 1.10
2 2019-20 1.15
3 2020-21 1.20

3.5

2.5

1.5

0.5

0
2018-19 2019-20 2020-21

Series 1

Explanation: -
The above chart shows the amount of loan Minor Irrigation is increased Than last year in 2018-19 it
was 1.10 crore in 2019-20 it was 1.15 crore and in 2020- 21 it increased to1.20 crore. Hence the
amount of loan is increased.

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Farm Mechanism for Agriculturist

Sr No Year Loan in cr
1 2018-19 80
2 2019-20 90
3 2020-21 97.2

120

100

80

60

40

20

0
2018-19 2019-20 2020-21

Explanation: -
The above chart shows the amount of loan for Farm Mechanism is increased Than last year in 2018-
19 it was 80 lacs in 2019-20 it was 90 lacs and in 2020- 21 it increased to 97.2 lacs. Hence the amount
of loan is increased.

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Horticulture
Sr No Year Loan (in cr)
1 2018-19 0.5
2 2019-20 0.60
3 2020-21 0.75

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2018-19 2019-20 2020-21

Explanation
The above chart shows the amount of loan for Horticulture is increased Than last year in 2008-09 it
was 0.50 crore 2019-20 it was0.60 crore and in 2020-21 it increased to 0.75 crore. Hence the amount
of loan is increased

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Financing farmer for land purpose

Sr No Year Loan in Cr
1 2018-19 1.80
2 2019-20 2.46
3 2020-21 2.80

2.5

1.5

0.5

0
2018-19 2019-20 2020-21 Category 4

Explanation
The above chart shows the amount of loan for land purpose is increased Than last year in 2018-19 it
was 1.80 lacs 2019-20 it was 2.46 lacs and in 2020-21 it increased to 2.80 lacs. Hence the amount of
loan is increased

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Financing two-wheeler to farmer

Sr No Year Loans in cr
1 2018-19 30.6
2 2019-20 36.2
3 2020-21 39.9

45

40

35

30

25

20

15

10

0
2018-19 2019-20 2020-21

Explanation
The above chart shows the amount of loan for two-wheeler is increased Than last year in 2018-19 it
was 30.6 lacs 2019-20 it was 36.2 lacs and in 2020-21 it increased to 39.9 lacs. Hence the amount of
loan is increased

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Vermicompost

Sr No Year Loan in cr
1 2018-19 2.40
2 2019-20 3.80
3 2020-21 4.00

4.5

3.5

2.5

1.5

0.5

0
2018-19 2019-20 2020-21

Explanation
The above chart shows the amount of loan for vermicompost is increased Than last year in 2018-19 it
was 2.40 lacs 2019-20 it was 3.80 lacs and in 2020-21 it increased to 4.00 lacs. Hence the amount of
loan is increased.

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Poultry farming

Sr No Year Loan in cr
1 2018-19 2.05
2 2019-20 2.26
3 2020-21 3.14

3.5

2.5

1.5

0.5

0
Category 1 2019-20 2020-21

Explanation
The above chart shows the amount of loan for poultry farming is increased Than last year in 2018-19
it was 2.04 cr 2019-20 it was 2.26 cr and in 2020-21 it increased to 3.14 cr. Hence the amount of loan
is increased

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Fishery
Sr No Year Loans in cr
1 2018-19 30.2
2 2019-20 34.3
3 2020-21 35.1

36

35

34

33

32

31

30

29

28

27
2018-19 2019-20 2020-21

Explanation
The above chart shows the amount of loan for fishery is increased Than last year in 2018-19 it was
30.2 2019-20 it was 34.3 lacs and in 2020-21 it increased to 35.1. Hence the amount of loan is
increased

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Setting up Agri clinic and Agri business centre

Sr No Year Loans in cr
1 2018-19 12.46
2 2019-20 13.06
3 2020-21 14.68

15

14.5

14

13.5

13

12.5

12

11.5

11
2018-19 2019-20 2020-21

Explanation
The above chart shows the amount of loan for setting up Agri clinic and Agri business centre is
increased Than last year in 2018-19 it 12.46 cr, 2019-20 it was 13.06 cr and in 2020-21 it increased to
14.48cr. Hence the amount of loan is increased

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Dairy farming
Sr No Year Loans in cr
1 2018-19 13.9
2 2019-20 16.0
3 2020-21 23.4

Chart Title
25

20

15

10

0
2018-19 2019-20 2020-21

Series 1 Column1 Column2

Explanation
The above chart shows the amount of loan for dairy farming is increased Than last year in 2018-19 it
13.9 cr, 2019-20 it was 16.0 cr and in 2020-21 it increased to 26.4 cr. Hence the amount of loan is
increased

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Solar
Sr No Year Loan in Cr
1 2018-19 21.1
2 2019-20 23.1
3 2020-21 28.8

35

30

25

20

15

10

0
2018-19 2019-20 2020-21

Explanation
The above chart shows the amount of solar is increased Than last year in 2018- 19 it 21.1 cr, 2019-20
it was 23.1 cr and in 2020-21 it increased to28.8cr. Hence the amount of loan is increased

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Shade net farming

Sr No Year Loan in Cr
1 2018-19 15.0
2 2019-20 18.8
3 2020-21 26.5

30

25

20

15

10

0
2018-19 2019-20 2020-21

Explanation
The above chart shows the amount of loan for shade net farming is increased Than last year in 2018-
19 it 15cr, 2019-20 it was 18.8cr and in 2020-21 it increased to 26.5cr. Hence the amount of loan is
increased

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Construction of farmhouse

Sr No Year Loans in cr
1 2018-19 2.34
2 2019-20 2.89
3 2020-21 2.97

3.5

2.5

1.5

0.5

0
2018-19 2019-20 2020-21

Explanation
The above chart shows the amount of loan for construction of farm house is increased Than last year
in 2018-19 it 2.34cr, 2019-20 it was 2.89cr and in 2020- 21 it increased to 2.97cr. Hence the amount
of loan is increased

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Purpose of borrowing loan

Sr No Purpose Numbers of Farmers Percent

1 Irrigation 53 53%
2 Development 9 9%
3 Equipment 13 13%
4 Farming purpose 5 5%
5 Other 20 20%
Total 100 100%

Number of Farmer

Irrigation Development Equipment Farming purpose other Total

Explanation: -
The above chart shows that the farmers taking loan from bank for various purpose like farming
purpose, development, irrigation, equipment, and other purpose. In which maximum number of
farmers taking loan for irrigation is 53%

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CHAPTER-7
FINDINGS

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FINDINGS

(1) Many farmers are borrowing loan for agriculture loan for Irrigation i.e. Drip Irrigation.

(2) Farmers are less aware about the other financial product related to the to agriculture
loan.

(3) The Awareness about the different financial product related to agriculture loan is very
less like N.H.B. (National Horticulture Board), Kisan credit card and for Agri-
business and Agri-clinic.

(4) No one farmer came to know through the TV so the very less awareness through the
T.V.

(5) Age group of 40-50 borrowing loan from the bank.

(6) In general observation found that many farmers are intentionally avoid repayment of
loan

(7) If more than one agency lends money for the same purpose at the same time there is
an overlapping of credit to borrower

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CHAPTER-8
SUGGESTONS

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Suggestions

1) Looking at the level of awareness it is recommends that promotion of agriculture loan

different can be done in different ways

2) Bank officers also have to increase the contacts with farmers. Encourage the people by
conducting seminars some programmers related to the agricultural schemes how it is
useful in remote areas. So, it creates awareness in the farmers.

3) Bank have to focus on enhancing the quality of some new schemes related to the farm
development, equipment, plantation and farm mechanization which are helpful to
fostering the agriculture production which are more important for the development of
Indian economy

4) So, the Bank have so taken some efforts to create awareness about different financial

5) Product by taking some programmes and bank officers have play a proactive role
aggressive marketing of short term and investment credit to potential borrowers.

6) Bank will have to some promotional activities through T.V

7) People of young age group who are risk takes by nature may be targeted separately. At
present era they are taking the decision related each and activity in the family. So, the
bank officers have to target the youngster's age group.

8) Some farmers are capable to repay the loan but they intentionally avoid to repay the
loan In which the government & bark recovery policy should tighten-up. After
recovery of the funds can utilized for various purposes.

9) Because of overlapping of credit result in financial indiscipline both parts of lenders &
borrowers. There is strictly restrict to farmers to borrowing loan from more than one
agency

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CHAPTER-9
CONCLUSION

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After analysing & interpreting Data it was found that SBI. BANK is very good Various facilities
are provided to farmer's relation between the branch officers & the farmers are very good.
Related To Study
1) Maximum no, of farmers belong to age group 40-50 i.e. 40% .In India have a Hindu
undivided family system in which only one person is head of the family. They have
knowledge about farming activities. He can handle the all responsibilities related to
family. He also has handholding as a security.

2) In which the 82% of land belongs to the male farmers according to HUF. Head of the
family is a male farmer so the male farmer is more than female farmer.

3) Maximum number of farmers belongs to age Landholding 0-5 Acres i.e. The 44%. It
because of division of family. They also think that when small farm is available, we can
develop the land by using the different techniques like farm mechanization, fertilizers
& effective utilization of resources.

4) 60% farmers come to know through friends & relatives’ penetration of banking sector
reach to the remote consumers & create awareness among farmers about the different
loan scheme so the information is spread more through friends & relatives.

5) Farmers said that approach of Bank officers towards farmers is co-operative Bank
officers aim to bridging the gap between their co-operative approach to friendly
approach and provide continuously inform about the different Scheme.

6) In the loan schemes many farmers take loan for irrigation Le. Drip irrigation for
horticulture plantation (Grapes, pomegranate) farmers also get subsidy for
plantation.50% of the total cost for Drip immigration.

7) Bank officers are co-operative & provide every information to farmers, which are
needed & provide knowledge about different schemes. They have full involvement of
Branch manager. Successful marketing of Agriculture loan with zeal and mission.

8) Bank officers are co-operative & provide every information to farmers, which are
needed & provide knowledge about different schemes. They have full involvement of
Branch manager. Successful marketing of Agriculture loan with zeal and mission.

9) The gap between sanctioned and disbursement is keep at minimum level cheap. Timely
and adequate, provision of bans. It helps agriculture diversification. The very short
period for sanctioning disbursement of loan said by 78% of farmers.

10) 92% farmers said that repayment of kisan is easy because they give some time to
repayment of ban. They encourage people by providing extensive credit and smooth

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recovery. Adjustment in Borrowers Account in which the repayment schedule will be

drawn on the loan amount in such way that subsidy amount is adjusted after the bank
loan portion (excluding subsidy) is credited.

11) 96% farmers are satisfied about loan procedure because fewer documents are
required. It takes less five for sanctioning and disbursement. They consider agriculture
land as a security and sanctioned the loan otherwise it is very difficult to get financial
support because land is not easily converted into money. It produces productive lending
to farmer

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CHAPTER-10
BIBLIOGRAPHY

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`BIBLIOGRAPHY

• SBI. BANK Annual Report.

• www.sbibank.in.

• Indian Economy: Mishra & Puri, Himalaya Publication

• Broachers

• Financial Markets and Banking Operations by Dr. Saroj Kumar

• Agriculture Finance, Banking and Co-operation by P. Krishna Shankar

• Agriculture Finance and Management by Subba Reddy

• Agriculture Schemes by Amit Yadav

• Agriculture Finance in India by K. Prabhakar Rajkumar

• Agriculture Finance by Geman

• Agriculture Economics by K Nirmal Ravi Kumar

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CHAPTER-11
ANNEXURE

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Annexure

QUESTIONNAIRE (FARMERS)
NAME: -
ADDRESS: -
AGE: -
SEX: -
MARITAL STATUS: -
LANDHOLDING(ACRE): -
CONTACT NO.: -

Section A: Aspects of Agricultural loan

1.Have you ever taken agricultural loan?

Yes
No

2.If yes, from which financial institutions have you borrowed before?
SBI Bank
Another bank
Co-operative societies
Local money lenders

3.What is the primary purpose of your agriculture loan?

Purchase of seeds
Equipment
Land acquisition
Farm Maintenance
Other

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4.How you rate the interest rates provided by SBI bank for agricultural loans
very competitive
somewhat competitive
Neutral
Not competitive

Section B: PERCEPTION OF SBI AGRICUTURE BANK LOAN

1.On a scale 1-5, how would you rate your overall satisfaction with SBI bank agricultural loan
services? (1 being very dissatisfied and 5 being very satisfied)
1
2
3
4
5

2.What are the main reasons for choosing/not choosing SBI bank for agriculture loan?

3.Do you feel SBI Bank understands the specific needs of farmers when offering loans?
Strongly agree
Agree
Neutral
Disagree
Strongly Disagree

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SECTION C: AWARENESS OF FINANCIAL PRODUCTS FOR AGRICULTURE

1.Are you aware of the various financial products offered by SBI Bank for specifically designed for
agriculture?
Yes
NO

2.Which of the financial product are you aware of?

Crop insurance
Farm credit cards
Warehouse receipts
None

3.How do you typically gather

Bank institutions
Government
Local Agri
Fellow farmers
Other

4.Would you be interested in attending workshops?

YES
NO

5.Would you be interested in learning more about specialized financial products tailored for
agricultural needs?
Yes
No

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SECTION D: FEEDBACK FROM FARMERS WHO HAVE BORROWED LOAN FROM SBI
BANK

1.How satisfied are you with overall loan disbursal process of SBI Bank?
Very satisfied
Somewhat satisfied
Neutral
Somewhat dissatisfied
Very Dissatisfied

2.Were the terms and conditions of the loan clear and understandable?
Yes
No

3.Are you satisfied with the interest loan of SBI Bank?

Yes
No

4.Would you consider taking another agriculture loan from SBI Bank?
YES
NO
MAYBE

5.What specific improvement or changes would you like to see from SBI Bank regarding Agriculture
loan?

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