Crop Loan is a financial term, available to the farmers in the form
of short-term credit for financing crop production programmes. It
is one of the essential requirements for the growth of agricultural
production & productivity. In India, more than 50 per cent
population lives in rural areas and approximately 60 per cent
population depends on agriculture. But still agriculture confronts
multiple risk and uncertainty due to lack of scattered land
holdings, traditional mode of production, low use of modern inputs
and technologies and lack of market incentives. This lead
ultimately low yield and farmers demoralized and invest less in it.
Therefore, Agricultural Credit Policy essentially lays emphasis on
augmenting credit flow at the ground level through credit planning,
adoption of region-specific strategies, rationalization of lending
policies and procedures and bringing down the cost of borrowing and
ultimately to provide better access to institutional credit for
small and marginal farmers to enable them so as to adopt modern
technology and induce them for the investment in agriculture.
General
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