Problems faced by financial institutions while sanctioning agriculture credit to the farmers in Taminadu

Abstract

Bank plays a major role in providing agriculture credit. Finance in agriculture is as important as other inputs being used in agricultural production. The prosperity of the country depends up on the agriculture sector. Bankers play a major role in providing agricultural credit to the farmers. Lack of finance is one of the fundamental problems in agricultural productivity and income of rural farmers. Therefore, banks provide agriculture credit to the farmers. Even though bank provides agriculture credit, the bankers faced many problems. This paper mainly focuses on problems faced by bankers while providing agriculture credit. A Multi stage sampling method was used to select the banks. The five districts were taken for sample in Tamil Nadu because those five districts were provide highest number of agriculture credit. The sample bank branches has taken 230. The result of the study showed that, Identification of real cultivator, fixing prudential norms, Identification of real cultivator, increasing demand for agriculture credit the above are the main problems faced by bankers while providing agriculture credit.