The Emerging Trends in Agriculture Credit in India

Abstract

The agriculture’s share in GDP is less than 15 per cent but it still remains the direct domain of over half of the population whose economic prospects are linked to the performance of agriculture. The study shows that the financial institutions play a major role in lending to agriculture. For increasing agriculture production providing the credit is not enough, but also supervision extension service. Financial institutions are needed to concentrate on not only crop loans and also encourage the farmers for utilize term loans, which are important for long time sustainability and increase production. The officials should maintain personal relation with the borrowers and also motivate them to enhance their earnings and repayment of loans.