English

Agricultural Credit in India

Advertisements

Topics

  • Introduction
  • Types of Agricultural Credit
  • Real-Life Application
  • Key Point Summary
Maharashtra State Board: Class 11

Introduction

Agricultural credit means financial loans provided to farmers, which help them buy seeds, fertilisers, tools, and support family expenses when personal savings are not enough.

Maharashtra State Board: Class 11

Types of Agricultural Credit

A. By Tenure (Time Period)

  • Short-Term: Up to 2 years (for inputs like seeds and fertilizers)
  • Medium-Term: 2–5 years (for equipment, livestock, minor irrigation)
  • Long-Term: Above 5 years (for buying tractors, land, constructing wells)

B. By Purpose

  • Productive Credit: For farming activities (buying seeds, land, machinery)
  • Unproductive Credit: For personal, social, or family expenses (weddings, ceremonies)
Maharashtra State Board: Class 11

Real-Life Application

Buying seeds with a bank loan is productive; borrowing money from relatives for a family wedding is unproductive.

Maharashtra State Board: Class 11

Key Point Summary

  • Agricultural credit is vital for supporting farm growth and rural life.
  • Loans differ by time period and by the objective.
  • Diagrams and tables make classification easier to understand for students.

Test Yourself

Advertisements
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×