A Study on the Role of Co-Operative Bank in A...

A Study on the Role of Co-Operative Bank in Agricultural Credit with Special Reference to Coimbatore

Author Name : Kavya S, Ms. P. Maheswari

ABSTRACT

Farmers are the pillar of agricultural economy. A majority of the farmers find borrowing necessary as their own farm savings are inadequate to finance various agricultural development activities. A crop loan is one of the most important aspects to increase agricultural output and to improve the standard of living of farmers at all the magnitude. It has argued that crop loan provides facility over resources the needed to the farmers. Crop loan has assumed helpful for changing the cropping pattern production, yield, distribution of production and other social economic changes with sustainable agriculture development for farmer. Agricultural Loans provide opportunities for creative development, and small farmers have been distant more limited in access to these opportunities than other sectors. In ideal form, the situation of agricultural crop loans for farmers goes as follows: the government of India and Reserve Bank of India loans money each to an agricultural bank, which in turn relend the funds directly, or through cooperatives to farmers. The farmers use the funds to purchase productive inputs. The agricultural credit is also helpful for the farmers to purchase modern eqiupments. Farmers choose co-operative society for their convenience to access agricultural credit.

Keywords: Agricultural loan, farmers, co-operatives.