Managing Credit Risk in Agriculture Lending

Abstract

Agriculture plays a crucial role in the development of Indian economy. It accounts for about 19 percent of GDP and about two thirds of the populations dependent on agriculture, 60 percent companies are based on agriculture produce, 50 percent national income by Indian farmers. Agriculture is the backbone of Indian economy. Agriculture credit facility is important part for the agriculture produce. It helps the farmers to purchase seeds, fertilizers, agriculture equipment and development of agriculture land and non- agriculture activities. The main aim of the present study is to underline the institutional agricultural credits and repayment behaviour of farmers and their development as well as national economy.