SUMMER TRAINING REPORT

ON

“A STUDY OF AGRICULTURE LOAN”

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION

SESSION: 2018-2021

SUBMITTED TO: SUBMITTED BY:

CONTROLLER OF EXAMINATION HARMEET SINGH

MD. UNIVERSITY, ROHTAK BBA(G) 5 TH SEM.

REGN. NO. 1811030073

UNIVERSITY ROLL NO.

D.A.V. INSTITUTE OF MANAGEMENT

NH-3, NIT, FARIDABAD
 DECLARATION

I undersigned hereby declares that, the project titled “A Study of Agricultural Loan” is submitted at DAV
Institute of Management, Faridabad for the fulfillment of degree of Bachelor of Business Administration(BBA).

This report has not submitted by me or any other person to any other University or Institute for a degree or
diploma course. This is my own and original work.

Place: Sign.

Date: (Harmeet Singh)

 ACKNOWLEDGEMENT

The satisfaction of completion of any successful task is incomplete without mentioning the name of people who
made it encouragement crowned our efforts with success.

I have a pleasure in submitting the project & I take this opportunity to express my sincere gratitude to all those
who have helped me in this completion of this project report.

The BBA curriculum given me a unique opportunity to be in association with one of the largest multinational
company in the country.

I express my heartily gratitude to my project guides, for providing me all the facilities required in completing
this project. My heartily gratitude to all those who have directly or indirectly given assistance in making this
project easier & possible.

Harmeet singh(BBA/2018-21)
 CONTENT

Chapter No. Chapter Name Page No.

1. Introduction

2. Company Profile

3. Product Profile

4. Review of Literature

5. Research Methodology

1. Primary Data

2. Secondary Data

3. Scope of the Study

4. Limitations of the Study

5. Objective of the Study

6. Data Analysis & Interpretation

7. Findings

8. Suggestions

9. Conclusion

Bibliography

Annexure
 INTRODUCTION

 Agriculture

Agriculture is the backbone of the Indian economy. It is the largest industry of the country. In India, 70% of
workforce still engaged in Agriculture & allied activities. At present (1990-91), Agriculture is the main source
of supply & support for Indian transport.

The Agriculture is the main source of raw material for leading industries. It is largely stands for prosperity of
our country. The agriculture gone through the various stages like Green, White and Yellow Revolution to
floriculture. The drastic change take place from independence to today.

 Role of Agriculture in India

 A Flourishing Agriculture Sector is for more important for the development of the Indian economy.
 Since farming is less rural a business than a tradition in India. Even at this stage about 80%
population lives in rural areas & directly or indirectly depends on Agriculture for its live hood.
 About 85 cores of person which are further multiplying at the rate of 2.5% per annum depends on
Agriculture sector.
 Most of our traditional industries depends on the bulk or foreign earnings draw their raw material
from this sector.
 The surplus generated by this sector would help Indian economy to reach the ‘Golden stage’.
 The share of Agriculture in national income plays crucial indicator in the economic development of
country.
 It supplies the necessities of life today Agriculture is feeding about 100 million people. Food
production crossed mark of 200 million tons in 1999-2000.
 Agriculture has a greater role in economic development in the less developed countries as it
provides livelihood to a vast majority of people living in the country.
 It provides offers enormous scope of alternative employment.
 Agriculture exports constitute a major portion of India’s & accounted for 50% of the export at
present.
 FOOD
FOREIGN EMPLOYMENT
EXCHANGE

Agriculture

INDUSTRY NATIONAL
INCOME
TRADE

FIGURE: Contribution of Agriculture in different sectors

The rural area is become more & more independent on the moneylender. It was necessary to relieve the poor
farmer from the clutches of village moneylender & stop their exploitation after many days the financial
institution are introduced like government, commercial, private & co-operate societies are introduced &
they act as a financial support to the farmers to Agriculture production.

Today the Agriculture have boom all over the world.

  Introduction to Financial sector in India

After the globalized economical process, lot of growth opportunities incorporated in service sector.
Hospitality, Entertainment, Tourism, Banking Insurance & Finance sectors gown up fastly not only in
terms of employments but also started offering various products and services to customers. Among the
above mentioned service sectors the banking and finance sector is proved to be essential component of
consumer’s life so far as financial need are concerned.

Now-a-days the consumers are concerned about financial products in terms of personal loans,
Individual loans, and Educational Loans and Agricultural loan. Being a student of financial management I
have decided to study the Agriculture loan as a financial product. The reasons for the same is being in the
next subtitle.

SELECTION OF THE TOPIC

Regarding the topic selected by me for study purpose. I want to quote following reasons why this
specific financial product is selected.

A. History of Agriculture
I. 10,000 years ago the man invented agriculture.
II. A primitive form of agriculture was shifting cultivation of crops.
III. After few years when these plots lost fertility & heavily infected with grass and soil born
pests, the cultivator would shift to new site.
IV. It is the backbone of the Indian economy.
B. Agriculture in India
I. Agriculture is prime source of live hood of most of the population in India.
II. It provides food for population fodder & also other needs like Fiber, Fuel, Timber, Wood &
raw materials to various industries.
III. 60% of the Indian population is engaged in Agriculture & Agro-based industries.
IV. At present, it occupied 35% shares of the Indian economy.
V. India is exporting Fruits, Tea, Coffee, Basmati rice & also many other agriculture
commodities, which help to get foreign exchange.
VI. India is the only country having all types of soil & clinic conditions suitable for growing
variety of crops.
 COMPANY PROFILE

AXIS BANK

 History of Axis Bank

Axis Bank was the first of the new private banks to have begun operations in 1994, after the
Government of India allowed new private banks to be established. The Bank was promoted jointly by the
Administrator of the specified undertaking of the Unit Trust of India (UTI-1). Life Insurance Corporation
of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU Insurance companies
i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriented Insurance
Company Ltd. and United India Insurance Company Ltd.

The Bank today is capitalized to the extent Rs.358.56 crores with the public holding (other than promoters)
at 57.60%.

The Bank’s Registered Office is at Ahmedabad and its Central Office is located at Mumbai. Presently the
Bank has a very wide network of more than 701 branch offices and Extension Counters. The Bank has a
network of over 2854 ATMs providing 24hrs a day banking convince to its customers. This is one of the
largest ATM network in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry
practices internationally in order to achieve excellence.
  Missions And Vision

 Mission
o Customer Service and Product Innovation tuned to diverse needs of individual and corporate
clientele.
o Continuous technology up graduation while maintaining human values.
o Progressive globalization and achieving international standards.
o Efficiency and effectiveness built on ethical practices.

 Vision
The AXIS Bank is committed to maintain the highest level of ethical standards, professional integrity
and regulatory. AXIS Bank’s business philosophy is based on four core values such as:
1. Operational excellence
2. Customer Focus
3. Product leadership
4. People

The objective of the AXIS Bank is to provide its target customers a full range of financial products and
banking services, giving the customer a one-step window for all his/her requirements. The AXIS Bank plus and
the investment advisory services program have been designed keeping in mind needs of customers who seeks
distinct financial solutions, information and advice on various investment avenues.
 Features
 A Savings Account for your Trust with a concessional Average Quarterly Balance.
 A multi-city at-par cheque facility with no clearing payments at centers across the country
wherever we are present.
 Free Anywhere Banking across all our Branches and Extension Counters and over all our ATMs.
 Free Demand Drafts or Pay Orders as and when required by you to remit funds.
 Free collection of cheque at outstation locations.
 Monthly Statement of Accounts delivered at your doorstep.
 Facility for collecting donation in your account through our network of Branches and Extension
Counters across the country, as well as through connect – our Internet Banking facility. Also,
Axis Bank can offer the facility to donate funds to your Trust through our Internet Banking
facility connect to its customers. An Axis Bank customer can donate any amount to your Trust
through the Internet. In such cases, the savings account of the customer gets debited and the
savings account of your Trust gets credited with the amount of donation at the same time. At the
end of every month, the Bank will provide an MIS giving details of the amount of donations and
the name of donor. This will enable the Trust to issue receipt to the donors.

 Board of Directors

 The Bank has 10 members on the Board. Dr. Sanjiv Mishra is the Chairman and Dr. Shikha
Sharma is MD & CEO of the Bank.
 The members of the Board are:
Dr. Sanjiv Mishra Chairman

Dr. Shikha Sharma MD & CEO

Mr. K.N Prithviraj Director

Mr. Prasad Menon Director

Mr. V.R Kaundinya Director

Mr. Prof. Samir K. Barua Director

Mr. Som Mittal Director

Miss Usha Sangwat Director

Miss Ireena Vittal Director

Mr. Rohit Bhagat Director

Mr. S. Vishvanathan Director

Mr. V. Srinivasan ED. Corporate Banking

Mr. Sanjeev Kumar Gupta ED. Corporate Centre & CFO

 ORGANISATION FLOW CHART

Chief Manager

Senoir
Senior Senior Manager(Agriculture)
Manager(Deposits) Manager(Loans)

Assistant Managr
Assistant Manager

Clerical
Clericals
 PRODUCT PROFILE

1. Product and Services

 Accounts
 Easy Access Savings Account
 Prime Savings Account
 Salary Savings Account
 Power salute: A salute to the defiance forces
 Senior Privilege Savings Account
 For the woman of today – Smart Privilege Savings Account
 A complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25
companies and NGOs
 Pension Savings Bank Account

 Deposits
 Fixed Deposits
 Recurring Deposits
 Encash 24
 Tax Saver Fixed Deposits

 Loans
Welcome to the wide range of Axis Bank’s loan products. Put an end to your financial troubles.
 Power Homes
 Power Drive
 Personal Power
 Study Power
 Asset Power
 Two Wheeler Loan
 Loan Against Security
  Consumer Power

 Cards
Apart from Gold & Silver credit cards, Axis Bank Provides:
 Axis Bank Meal Card
 Axis Bank Gift Card
 LIC co-branded Annuity Card

 Capital Markets
 Debt Solutions
 Equity Solutions
 Private Equity, Mergers & Acquisitions
 Advisory Services
 Trusteeship Services
 Depository Services
 Capital Market Funding
 E-Broking

 Credit
 Working Capital Finance
 Term Loans
 Trade Services and Trade Finance
 Structures Finance
 Supply Chain Management
 Overseas Financing and Transactions
 SME Standard Products
 Power Trace
2. Trust/NGO Savings Account

Thoughtful banking for people who spend their lives thinking of others need special banking for special
causes.
Axis Bank’s Trust Account is an effort to other thoughtful banking for people who spend their lives thinking of
others. It is a complete banking solution for Trust, Associations, Societies, Government Bodies, Section 25
companies and NGOs, so that the organizations can devote all of their time to their noble motivations.

3. AXIS BANK-AGRICULTURE LOAN SCHEMES

1. Agriculture
Direct finance to farmers for agriculture purposes

 Short term loans for raising crops i.e. Crop Loan.

 Medium and Long Loans
 Purchase of Agriculture implements and machinery
 Purchase of Farm nursery
 Development of irrigation potential
 Reclamation and land development schemes
 Construction of farm buildings and structures
 Construction and running of storage facilities
 Fig. MINOR IRRIGATION FOR AGRICULTURISTS

Purpose
Digging of new wells, revitalization of existing well, purchase of oil engine, electric motor, pump set
installation of pipe line, sprinkler, irrigation, drip irrigation, tube well, bore well, etc.

Eligibility
Agriculturist who owns agricultural land.

Amount
For new dug wells as per the NABARD unit costs for equipment’s/estimates.

Repayments
Depending upon the repaying capacity 7 to 11 years.

Security
Mortgage of land, Hypothecation of movable assets and guarantors.

Other Terms & Conditions

Proposed well should be located in white watershed area. It should not be in dark watershed area.
 Fig. FARM MECHANIZATION FOR AGRICULTURISTS

Purpose
Purchase of Tractors/Power tillers.
Purchase of Harvesters.
Purchase of Threshers & other farm implements.

Eligibility
Agriculturist who owns at least 8 acres of Irrigated land. The Tractor should get at least 1500 hrs. of work
in a year.

Amount
As per cost of machinery.

Repayment
7 to 9 years.

Security
Hypothecation of Tractor/Trolley and accessories.
Other Terms & Conditions
Comprehensive insurance of machinery with bank clause.

 Other types of direct finance to farmers

 Short term loans
a. Dairy, Fishery, Piggery, Poultry, Bee-keeping.
 Medium and Long term loans
a. Plantation, Horticulture, forestry, bio-gas plants.

 Indirect finance to agriculture

 Credit financing to the distribution of fertilizers, pesticide & seeds etc.

 Other types in direct finance

 Finance for hire purchase for distribution of machinery and implements.
 Cold storage.
 Storage facility(market, yards, godown)

2. AXIS BANK – Loan for Purchase of Agriculture Land

 Eligibility- small and marginal farmers who would own maximum of non-irrigated and irrigated land,
share croppers/Tenant farmers.
 Purpose- purchase, develop and cultivate agriculture land.

 Margin- up to Rs.50000/- Nil, above Rs.50000/- min. 10% margin.

 Security- Mortgage of Land.
 Interest Rate- Applicable under scheme.
 Repayment period- Loan may be repaid in 7-12 years.
 Repaying capacity- The financing branch satisfy itself that borrowers have an adequate surplus.
3. AXIS BANK – Export Finance

A. Types of pre-shipments finance.

B. Liquidation of packing credit advance.
C. Post shipment finance – the advance is against receivables Bank Guarantees in foreign exchange.
 Bid bond Guarantees.
 Performance Guarantees.
 Guarantees for advance payment made by foreign buyer to Indian exporter.

4. KISAN CREDIT CARD (MKCC)

Purpose
 Cultivation of crops
  Meeting the short-term credit needs of farmers for crop production and allied activities etc.

Eligibility
 Agriculturist who owns agricultural land.

Amount
 As decided by district Technical committee & limit worked out for the purpose.

Security
 Mortgage of land.
 Hypothecation of crop/Assets.

Repayment
 Revolving credit facility for 3 years.
 Coinciding with harvesting of crops-season/marketing of produce.

Other Terms & Conditions

 Assured and timely availability of working capital for crop cultivation.
 Borrowers are covered under personal accident insurance scheme.
 Insurance for notified crops is available.
5. DEVELOPMENT OF COMMERCIAL HORTICULTURE THOUGH PROUCTION AND
POST HARVEST MANAGEMENT

 To improve linkage between horticultural produce and marketers to create integrated network for
marketing of horticultural product.
 High density plantation, Micro-propagation.

Purpose-
 Cultivation of fruit crops-mango, Grapes etc.
Eligibility
 Agriculturist with adequate provision of irrigation.
Amount
 As per NABARD unit costs/Project.
Security
 Mortgage of land.
 Hypothecation of crops.
Repayment
 Within 15 years.
 REVIEW OF LITERATURE

The Review of Literature is an important task of the research work. It assists to understand the significance,
background and the current position related to the subject chosen for the research work. So it is necessary to
review all kinds of literature related to the subject matter.

S.MAYILVAGANAN AND E. SAUNDAVARJAN (2013) writes that the customer services in UCBs
comparatively better because local employees are recruited who are well familiar to the customers. Now
circumstances are changing as the business. The well qualified staff should be selected. They should be trained.
The banks should use the means of modern information and technology new system, such as all time banking,
ATM, home banking, Tele banking etc. for survive in the future competition.

JYOTI GUPTA AND SUMAN JAIN (2012) purpose of this paper to know the lending practices of co-
operative banks in India and measure and compare the efficiency of co-operative Bank of India and to study the
impact of size on the efficiency of the co-operative Banks.

SUMEET GIRAM (2014) writes that the urban co-operative Banks by its vast numbers and membership along
with its local appeal have become an important sector in the area of banking and finance. RBI inspection and
periodical government audit of UCBs did not show any worth recording changes in the non professional attitude
of the board of directors and also expected that they will follow the same. From the above extract, it is clear that
the paradigm shift of mind set in the board of directors collectively and directors individually, becomes a major
management of UCBs.

KISHOR NIVRUTTI JAGTAP (2013) in his paper, Urban co-operative banks plays very important role in
meeting the requirement of small traders agriculturists and middle class income group people. The main
objectives of the study to know about Urban schedule banks in western Maharashtra & to study services & new
trend adopted by Urban schedule bank.
SOYELIYA USHAL (2013) in his paper, world economy has progress by help of banking business purpose of
the study to know the lending practices of the banks in India & measure the efficiency of co-operative banks of
India. Studied the satisfaction level of the banks customers from bank lending policies.

RAJIV KUMAR AND JASMINDEEP KAUR (2013) in his paper, wrote that Banks are the backbone of
Indian Financial System co-operative banking has been playing a crucial role in the development of rural
economy this paper only focuses on medium & short term rural co-operative banks working in the Haryana
which is predominately a rural economy state.

K. DESHMUKH (2015) Analysed the performance co-operative banks involved in local development and
progress of financial position of middle class people. Co-operative banks play very important role in the
financial system. The co-operative banks in India from an integral part of our money market today.

R.RENUKA AND C. ELAMATHI (2013) in this study, the performance of the bank has been evaluated in
terms of loans disbursement year wise as well as district wise, membership, share capital, total advance, present
recovery etc. study the progress relating to revival of rural co-operative.

E.G NANASEKARAN ET.AL (2012) write that the overall financial performance of the urban co-operative
banks in all fronts namely, share capital, membership, profits and reserve funds, loans and advances, koabs
issued, working capital, overdraft etc. are showing a significantly and undistrubing trend through the application
of different statistical tools applied in the study.

SACHIN R.AGRAWAL AND S. S. SOLANKE (2012) in his research paper, write that, a co-operative
movement plays a major role in development of social and economic environment in India. But Govt. of India
has not provided a good support to the co-operative due to which many problems has been faced by them. Thus,
an attempt has been made to elaborate the problems and the relative prospective of co-operative banks in Indian
economy.
RESHMA YOVAGAL (2014) write that the power of technology has fuelled banking business and actually
transformed banking system. The impact of internet banking on cost savings, revenue growth and increased
customer satisfaction on industry is tremendous and can be a potential tool for building a sound strategy for the
development of the economy of the country. The development and the increasing progress that is being
experienced in the information and communication Technology have brought about a lot of changes in almost
all facts of life. E-banking is convenient, not time bound, without geographical boundaries with low cost
services. Besides these benefits, increased use of mobile services and use of internet as a new distribution
channel for banking transactions and international trading requires more attention towards E-banking security
against fraudulent activities. It also pose new challenges for country authorities in regulating and supervising th
financial system.

K. VEERANMADEVI AND M.G.SARAVANARAJ (2012) write that the computer technology is changing
the banking scene. The paper presents a study which aims to analyze the role of information technology in the
Indian Banking sector. The importance of computers and technology in the banking sector is being regarded as
a solution to large number of problems. It is seen that, in time rapidly changing environment of uncertainty and
changes in the world, speed, reliability analysis of critical area or an exception basis are necessary.

R.D.GANAPRE AND R.D.GAIKWAD (2011) in his research paper mentioned that, the economic
development of any country to the large extend depend upon healthy and wealthy banking system. Banks are
backbone for industry sector. This paper aims and objectives at discussing causes of recession, its effects and
measure to be taken to overcome this problem with reference to Indian banking.

PADGALWAR S.L (2012) in his research paper writes that, more than 70% of the total population depends
upon Agriculture for its livelihood. Over 40% of the GDP in India is contributed by the rural area. The rural
banking plays a very useful role in the development of a country. The study reveals that the RRBS shows a
steady and continuous progress in all spheres of banking since its inception.

VERSHA MOHINDRA AND GIAN KAUR (2011) The present study attempts to empirically examine the
relative the efficiency of regional rural banks during the most reform period spanning from 1991-92 by using
non-parametric technique of data envelopment analysis.
SHANTANU BOSE (2014) write that urban co-operative banks play significant role in the development of
small & medium industries in urban areas. This paper focuses on the current scenario of urban co-operative
banking system in India, by mentioning its need, its brief history, its current structure among the co-operative
credit society, improvement in financial position of UCBs and also highlights the challenges faced by the UCBs
and its future prospects.

B.G.GAIKWAD (2012) in research paper write that rural banks mainly focused upon the agro sector, rural
banking in India started since the establishment of banking sector in India. All Rural Banks play very important
role in rural development in Maharashtra.

ANAND K.KITTUR AND GIRIJA V. AUUNTI (2012) Evaluate the performance of these grass root level
commercial banks and agricultural credit in Karnataka. The researchers has incorporated the membership, share
capital, working capital, deposits, loans, profits and loss etc.
 RESEARCH METHODOLOGY

Research Definition:
Research is a scientific activity in which decision is made & problem is solved.

1. Research Methodology:
The method or formwork within which the research is to be done is called Research Methodology.

 Types of Research of my study is

 Exploratory
 Descriptive procedures of AXIS BANK.

2. Data collection:

 Primary Data
In the form of feedback of the farmers collected through questionnaire.

 Secondary Data
All the data is collected from the books, publication. Records by the bank, website.

 Sample Size
The determined sample size for the study is 100 farmers.
 Hypothesis
Related to the study undertaken, following statements can be the statements for hypothesis,
 Agriculture credit/finance has its impact on the farmer’s progress.
 Agriculture credit/finance has no impact on the farmer’s progress.
 The farmer’s borrowed loan from AXIS BANK are satisfied.
 The farmer’s borrowed loans from AXIS BANK are not satisfied.

3. Scope of the Study

The scope of the study lies in three dimensions.

 Scope for the Student

The student studying the topic will get an exposure to the Agriculture Sector, financial procedure to
agriculture credit finance procedure.

 Scope for AXIS BANK

The Axis Bank is an organizational study, will come to know the exact feedback of customers for the
schemes & offer, they are making towards them it some derivation will found then definitely it will
useful for the Bank itself to improve their functioning.

 Scope for the society in general

As the agriculture sector and the farmers are the part and parcel of the society, the study itself and the
findings as such will be definitely useful for the society.
The society in general and farmers in particular can be well understood in terms of the agriculture
Finance procedures.
4. Limitations of the Study

The study is completed with following probable limitations.

 Only one of bank is selected to study so there is no comparative analysis.
 The scope is limited for Faridabad district & specifically NIT branch.
 The time available for the purpose if study is very less i.e. two months only. Mostly secondary
data is referred than the primary data for the study is limited.

5. Objective of Study

The study is undertaken with the following objectives:

 To study the concept of Agriculture Loan.
 To study the perception of farmers towards Axis Bank Loan.
 To find out the awareness of farmers about various types of financial products for agriculture.
 DATA ANALYSIS AND INTERPRETATION

SECURITIES
Securities against which banks lends money can be of two types.

 Primary Security
Whenever any loan is sanctioned, some goods or assets are brought with the help of funds. These are
called Primary Security.

 Collateral Security
On Primary security, banks don’t have control or goods. The goods are under lock key of the bank. In
such case, bank prefer to insist some additional security which is called as Collateral Securities.

AXIS BANK gives revised margin & security norms for Agriculture Advances.

Sr. No. Type of Credit Loan Amount Margin

1. Margin money
a. Crop loans & other short term I). Up to Rs.50000/- No Margin
loans. ii). Over Rs.50000/- 15 to 20 %( depend on
quantum of finance).

b. Term Loans I). Up to Rs.50000/- No Margin

ii). Over Rs.50000/- 15 to 20%
2. Security norms
c. Crop loans & other short term I). Up to Rs.50000/- Hypothecation of crops.
loans. ii). Over Rs.50000/- Mortgage of land & third party
guarantee.
d. Term loans I). Up to Rs.50000/- Hypothecation of Asset Land.
ii), over Rs.50000/-
DISBURSEMENT OF LOAN IN 5 YEAR

Sr. No. Year Loan Amount(crore)

1 2019-20 3.95
2 2018-19 3.65
3 2017-18 3.15
4 2016-17 2.85
5 2015-16 2.12
(SOURCE PRIMARY DATA)

Loan Amount (crore)

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2019-2020 2018-2019 2017-2018 2016-2017 2015-5016
Loan Amount (crore)

EXPLANATION

The above graph indicates classification of number of farmers in having loan. The minimum number of farmers
having loan in 2015-16 is 2.12 (crore) and the maximum number of farmers having loan in 2019-20 is
3.95(crore).

Their loan amount increased year by year.

LAST 5 YEARS DEFAULTER OF AXIS BANK

 Sr. No. Year No. of Farmers Amount(Rs.)
1 2019-20 4 900000
2 2018-19 7 1250000
3 2017-18 7 1120000
4 2016-17 10 1360000
5 2015-16 12 1650000
(SOURCE PRIMARY DATA)

Amount(Rs)
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
2019-20 2018-19 2017-18 2016-17 2015-16
Amount(Rs)

EXPLANATION

The above graph indicates classification of number of farmers Defaulter and the minimum number of 4 farmers
having Defaulter loan in 2019-20 is Rs.900000 and the maximum number of 12 farmers having Defaulter loan
in 2015-16 is 1650000.

ANALYSIS & INTERPRETATION OF DATA

 Age Group
Sr. No. Age Group No. of Farmers Percentage
1 20-30 4 4%
 2 30-40 26 26%
3 40-50 40 40%
4 50-60 12 12%
5 60-70 10 10%
6 70-80 16 16%
Total 100 100%
(SOURCE PRIMARY DATA)

Age of Farmers
45
40
35
30
25
20
15
10
5
0
20-30 30-40 40-50 50-60 60-70 70-80
Age of Farmers

EXPLANATION

The above graph indicates classification of number of farmers in terms of age group. Maximum number of
farmer belongs to the age group 40-50 i.e. 40%. Minimum number of farmers in the age group 20-30 is 4%.

 Land holdings of farmers

Sr. No. Land in Acres No. of Farmers Percentage
1 0-5 44 44%
2 5-10 20 20%
 3 10-15 16 16%
4 15-20 10 10%
5 20-25 4 4%
6 25-30 6 6%
Total 100 100%
(SOURCE PRIMARY DATA)

No. of Farmers
50
45
40
35
30
25
20
15
10
5
0
0-5 05_10 10_15 15_20
No. of Farmers2 20_25 25_30

EXPLANATION

The above graph indicates that classification of number of farmers in terms of Land holdings in Acres. The
maximum number of farmers having land in 0-5 acres is 44 and Minimum number of farmers having land in 20-
25 acres is 4.

 Gender of Farmers
Sr. No. Gender No. of Farmers Percentage
1. Male 82 82%
2. Female 18 18%
Total 100 100%
(SOURCE PRIMARY DATA)
 Gender of the Farmer

18%
Male
Female

82%

EXPLANATION

The above chart indicates the distribution of Farmers according to Gender. In which male Farmers have a
majority 82 in number & the number of female is 18.
  Purpose of borrowing loan
Sr. No. Purpose No. of borrowing Percentage
loans
1 Farming Purchase 4 4%

2 Equipment 14 14%

3 Irrigation 52 52%

4 Development 10 10%

5 Other(Plantation) 20 20%

Total 100 100%

(SOURCE: PRIMARY DATA)

Purpose of Borrowing Loan

60

50 52

40

30 Purpose of Borrowing Loan

20
20
10 14
10
0 4
Farming Equipment Irrigation Development Others
Purchase

EXPLANATION

Above chart shows the Farmers taking loan from the bank for various purposes like Farming Purchase,
Equipment, Irrigation, Development & Other activities.
In which maximum number of farmer taking more credit for Drip Irrigation is 52% 20% for the other
agricultural activities.
  Media/Sources of information
Sr. No. Sources of Information No. of Farmers Percentage
1 Newspaper 8 8%
2 T.V 0 0%
3 Bank Officers 32 32%
4 Friends & Relatives 60 60%
Total 100 100%
(SOURCE: PRIMARY DATA)

Source of Information
70
Number of Farmers

60

50

40

30

20

10

0
Newspaper T.V Bank Officers Friends & Relatives

EXPLANATION

The above chart shows that bank creates awareness in the people through different source of information like
Newspaper, Bank officers, T.V and Friend & Relatives.

The Maximum Number of people comes to know about agriculture loan scheme of AXIS BANK through
Friend & Relatives i.e. 60% & minimum from Bank officer is 32%.
  Satisfaction about Loan Procedures

Sr. No. Satisfaction Level No. of Farmers Percentage

1 Yes 96 96%
2 No 04 04%
Total 100 100%
(SOURCE: PRIMARY DATA)

Satisfaction Level
Yes No
4%

96%

EXPLANATION

The above chart shows the satisfaction level of farmers about the loan procedure of AXIS BANK. In which
96% of the farmers are satisfied about the loan procedure and the rest of 4% are not satisfied.
  Approach of Bank Officer towards farmers

Sr. No. Sources of Information No. of Farmers Percentage

1 Co-operative 84 84%
2 Friendly 16 16%
3 Non Co-operative 0 0%
Total 100 100%
(SOURCE: PRIMARY DATA)

Approach of Bank Officers

90 84
80
70
60
50
40 Approach of Bank Officers
30
20 16
10
0
0
Co-operative Friendly Non Co-operative
Heads

EXPLANATION

The above table shows the approach of bank officers towards Farmers. Like. Co-operative, Friendly & Non Co-
operative. 84% of farmers said that Approach of bank officers towards the farmers is Co-Operative & 16% are
said that Approach of bank officers towards the farmers Friendly in nature.
  Feedback about Interest Rate

Sr. No. Feedback about Interest Rate No. of Farmers Percentage

1 High 4 4%
2 Medium 84 84%
3 Less 12 12%
Total 100 100%
(SOURCE: PRIMARY DATA)

Feedback about Interest Rate

90
80
70
No. of Farmers

60
50 Feedback about Interest Rate

40
30
20
10
0
High Medium Less

EXPLANATION

Above chart shows feedback about interest rates on the Agriculture Loan. The majority of the Farmers means
84% said that interest rate is Medium and 12% said that the rate is less & 4% said that rate is high.
  Feedback about waiting period for Sanctioning & Disbursement of loan

Sr. No. Opinion No. of Farmers Percentage

1 Long 22 22%
2 Short 78 78%
Total 100 100%
(SOURCE: PRIMARY DATA)

Opinion
22%

Short
Loan

78%

EXPLANATION

Above chart shows feedback about waiting period for Sanctioning & Disbursement of loan 78% farmers think
that Waiting period for Sanctioning & Disbursement of loan is short & 22% farmers think that it is long period.
  Opinion about Repayment option

Sr. No. Opinion No. of Farmers Percentage

1 Hard 8 8%

2 Easy 92 92%

Total 100 100%

(SOURCE: PRIMARY DATA)

Repayment Option
100
90
Number of Farmers

80
70
60
50
40
30
20
10
0
Hard Easy
Axis Title

EXPLANATION

Above chart shows opinion about Repayment option of the Loan. In which 92% of the farmers said that
Repayment loan option are easy & people said that Repayment loan option is Hard.
  Awareness about the Financial Product

Sr. No. Financial Products No. of Farmers Percentage

1 N.H.B(National Horticulture 10 10%
Board)
2 Kisan Credit Card 5 05%
3 Drip Irrigation 35 35%
4 Vehicle Loan 12 12%
5 Cold Storage 10 10%
6 Allied activity 15 15%
7 Agri clinic & Agri business 5 5%
8 Not known 8 8%
Total 100 100%
(SOURCE PRIMARY DATA)

Financial Products
40
35
30
No. of Farmers

25
20
15
10
5
0
N.H.B MKCC Drip Vehicle Loan Cold Storage Allied Agri clinic Not known
Irrigation Activity

Financial Products

EXPLANATION
Above chart shows the awareness is the people related to Financial Product of the agriculture loan scheme of
AXIS BANK.
  Farmers wants to Recommend the AXIS BANK to Others

Sr. No. Opinion No. of Farmers Percentage

1 Yes 92 92%
2 No 8 8%
Total 100 100%
(SOURCE: PRIMARY DATA)

Recommend to Other

8%

Yes
No

92%

EXPLANATION

Above chart shows the farmers want to recommend the AXIS BANK to others in which 92% people wants to
recommend & 8% people don’t have any interest to recommend AXIS BANK to others.
 FINDINGS

 Many farmers are borrowing loan for agriculture loan for Irrigation i.e. Drip Irrigation.
 Farmers are less aware about the other financial product related to the agriculture loan.
 The awareness about the different financial product related to agriculture loan is very less like N.H.B
(National Horticulture Board), Kisan Credit Card and for Agri – Business and Agri – Clinic.
 No one farmer came to know through the T.V, so they very less awareness through T.V.
 Age group of 40-50 borrowing loans from the Bank.
 In general observation found that many farmers are intentionally avoid repayment of loan.
 If more than one agency lends money for the same purpose at the same time there is an overlapping of
credit to borrower.
 SUGGESTIONS

Looking at the level of awareness, it is recommends that promotion of agriculture loan can be done in different
ways.

 Bank officers also have to increase the contacts with farmers. Encourage the people by conducting
seminars; some programmers related to the agricultural schemes hot it is useful in remote areas. So it
creates awareness in the farmers.
 Bank have to focus on enhancing the quality of the some new schemes related to the farm development,
equipment, plantation and farm mechanization which are helpful to fostering the agriculture production
which are more important for the development of Indian economy.
 So, the Bank have to take some efforts to create awareness about different financial product by taking
some programmers and bank officers have play a proactive role is aggressive marketing of short term
and investment credit to potential borrowers.
 Bank will have to some promotional activities through T.V.
 People of young age group who are risk takes b nature may be targeted separately. At present era they
are taking the decision related each and activity in the family. So the bank officers have to target the
youngster’s age group.
 Some farmers are capable to repay the loan but they intentionally avoid to repay the loan. In which the
government & bank recovery policy should tighten-up, after recovery of the funds can utilized for
various purpose.
 Because of overlapping of credit result in financial indiscipline both parts of lenders & borrowers.
There is strictly restrict to farmers to borrowing loan form more than on agency.
 Conclusion

After analyzing & interpreting data, it was found that AXIS BANK is providing the very good facilities to
farmers and relation between the farmers and branch officer are very good.

Related to study

 Maximum no. of farmers belong to age group 40-50 is 40%.

In India, there are a Hindu undivided family system in which only one person is head of the family.
They have knowledge about farming activities. He can handle all the responsibilities related to family.
He also have handholding as a security.
 In which the 82% of land belongs to the male farmers according to HUF, Head of the family is male
farmer so the male farmer is more than female farmer.
 Maximum number of farmers belongs to age Landholding 0-5 Acres is 44%. It is because of division of
family. They also think, that when small farm is available, we can develop the land by using the
different techniques like farm mechanization, fertilizers & effective utilization of resources.
 60% farmers come to know through friends & relatives penetration of banking sector reach to the remote
consumers & create awareness among farmers about the different loan scheme so the information is
spread more through friends & relatives.
 Farmer said that approach of Bank officers towards farmer is Co-operative Bank officers aim to
bridging the gap between their Co-operative approach to friendly approach and provide continuously
inform about the different Scheme.
 In the loan schemes, many farmers take loan for irrigation i.e. Drip irrigation for Horticulture plantation
(Grapes, Pomegranate) farmer also get subsidy for plantation. 50% of the total cost for Drip irrigation.
 Bank officers are Co-operate & provide every information to farmers, which are needed & provide
knowledge about different schemes. They have full involvement of Branch manager. Successful
marketing of Agriculture loan with zeal and mission.
 Axis Bank has a medium rate of interest said by farmers. The rate of interest is only levied on whatever
amount is withdrawn from sanctioned amount. So interest only paid on the amount.
 The gap between sanctioned and disbursement is keep a minimum level cheap, timely and adequate,
provision of loans. It helps agriculture diversification. It has a very short period for sanctioning &
disbursement of loan said by 78% of farmers.
 92% farmers are satisfied about loan procedure because fewer documents are required. It takes less file
for sanctioning and disbursement. They consider agriculture land as a security and sanctioned the loan
otherwise t is very difficult to get financial support because land is not easily converted into money. It
produces lending to farmer.
 BIBLIOGRAPHY

1. Author. Kothari C.R. “Research Methodology” 1998 3rd Edition.

2. S. k. Puri “Indian Economy” 1996, 2th Edition.
3. P.N. Varshney “Banking Law & Practices” 1991, 4th Edition.
4. AXIS BANK Annual Report.
5. Publication of Axis Bank.
6. www.axisbank.in.com
 ANNEXURE
Questionnaire (FARMERS)

Name:-
Address:-
Age: - Sex: - M/F
Landholding (Acre):- Contact No.:-

Q.1 Have you borrowed Agriculture Loan form AXIS BANK?

Yes No

Q.2 If yes then from which bank and why?

(I).
(ii).

Q.4 How did you come to know about Agriculture Loan AXIS BANK?
(I) Newspaper (ii). T.V. (iii). Bank Officer (IV). Friends and Relatives

Q.5 What is the purpose of borrowing the loan?

(I). Farming purchase (ii). Equipment (iii). Irrigation (IV). Development
(v). other

Q.6 Are you satisfied with the Loan procedure of AXIS BANK?
Yes No
Q.7 If Yes, Why? And if No, Why? Specify reasons.
i.
ii.

Q.8 Give your comment on:

I). Approach of Bank officers: co-operate/friendly/Non-co-operate
ii). Interest Rates: High/medium/less.
iii).Repayment option: Hard/Easy
iv)/Waiting period for sanctioning and distribution of loans: Long/Short

Q.9 Are you aware about other financial products related to agriculture loan AXIS BANK? If yes,
enlist some of them.
I). ii).

Q.10 Do you want to recommend AXIS BANK agriculture loan to the offers?
Yes No