Sources of Agricultural Finance | TYBCOM Business Economics Sem 5 | Mumbai University

Topics: Sources of Agricultural Finance, non-institutional sources of agriculture finance, and institutional sources of agriculture finance.
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In This Video, I have discussed what are the sources of agricultural finance or sources of agricultural credit/sources of agricultural credit in India with easy notes and mind mapping. For full notes visit the website: imaduddineducare.com

Non-Institutional source of agricultural finance
Non-Institutional sources of agriculture finance include moneylenders, traders and commission agents, relatives, and landlords.  In 1951, 92.7 percent of rural agriculture credit was provided by the non-institutional source money lenders providing 69.7 percent of the credit.

At the present contribution of non-institutional finance is reduced to about 20 percent. 40 percent of small and marginal farmers' credit depends on non-institutional sources.

Non-institutional credits have decreased due to the nationalization of major banks and the establishment of NABARD (National Bank of Agriculture and Rural Development). 

Institutional source of agriculture finance
Institutional sources of agriculture finance include co-operatives, and commercial banks including the SBI Group, RBI, and NABARD.

Recently share of Institutional credit has increased after the nationalization of commercial banks and the establishment of NABARD.

Cooperative and commercial banks have been playing the important role in rural agriculture credit. let us discuss in the brief the major source of institutional credit.
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