Agriculture forms the backbone for the Indian economy and due to this reason financial institutions and banks provide monetary aid to farmers all over India. The agricultural loan is provided to the farmers to facilitate various agricultural activities.
Farming involves various activities that include transforming a seed to an end product. There are a bunch of procedures, techniques, and equipment involved in advanced farming methods. Since farmers of India lack some resources, they then opt for such loans to fulfil their requirements. The agricultural loans focus on farming activities related to the cultivation of crops and on other forms of agriculture activities as well such as floriculture, animal husbandry, horticulture, silk farming, aquaculture, pisciculture, and apiculture.
Under the farming loan schemes some of the chief areas covered are:
Apart from these, farmers also get financial aids as grants and subsidies to protect them in the situation of crops getting damaged due to weather conditions or other factors.
Agricultural Loans vital purpose is to give credit flow to the farming sector for smooth functioning.
