A Study on Agricultural Loans offered by NABARD to Farmers

Abstract

This study delves into the comprehensive landscape of agricultural loans disbursed by the National Bank for Agriculture and Rural Development (NABARD) to farmers in India. The research scrutinizes the varied purposes for which these loans are extended, encompassing crop cultivation, animal husbandry, dairy farming, poultry, fisheries, and agro-processing. Emphasizing the different loan types – short-term, medium-term, and long-term – the investigation explores the interest rates associated with each category and evaluates the role of government subsidies in enhancing affordability. Additionally, the study investigates the credit delivery mechanism facilitated by NABARD through cooperative banks, regional rural banks, and commercial banks, ensuring an inclusive approach to reach farmers across diverse strata. The research underscores the technological impetus provided by NABARD, encouraging farmers to adopt modern agricultural practices and technologies. Special attention is given to risk mitigation measures, including crop insurance, designed to shield farmers from losses arising due to unforeseen circumstances. Keywords: NABARD, Agricultural Loans, Farmer Financing, Credit Delivery, Government Subsidies, Rural Development, Risk Mitigation, Financial Inclusion, Technological Adoption, Indian Agriculture.