INTRODUCTION-

The following research was conducted by a group of four students

in our class for a class assignment that asked us to collect information about
farmers in our community and analyse their financial needs as well as the
credit they required.
This assignment required the recommendation of appropriate financing
institutions as well as financial planning. While we, as students, had the
opportunity to study about how financial institutions work and give
recommendations to farmers.

1.FARMER 1:
 Name: Myakala Sammaiah
 Age: 45 years
 Family Members in the Family : There are 5 members in his family.
 Earning Member in the Family : Sammaiah (father) Bhagya (mother)
 Source of Income : Farming.
 Size of Land Holding: 7 Acres
 Crops Sown in a year or Season: Kharif (6.5 Acres Rice, 0.5 Acre
Cotton)
Rabi: (5Acres of Rice,2Acres of Maize)
Loan Taken –
The farmer Myakala Sammaiah had took a loan amount of 1 lakh from
Telangana Gramena Bank on june 16th 2020. It is a Crop loan and the farmer has
KCC( Kisan credit card) at an interest rate of 7% (7\12=0.58Rs per 100) for a
duration of 2 years.
Documents required by the bank :
Adhar card , Pan card, Land Passbook , Passport size photo,
Analysis of the Loan:
 Type of Loan: Crop Loan
 Purpose: Productivity Purpose
 Source of Loan: Telangana Gramena Bank ( Institutional Loan)
 Amount: 1 Lakh
 Repayment Period: 2 years
 Calculation :
Principle Amount: 100,000 Rs/-
Rate of Interest: 7% (7\12=0.58rs per 100)
Time Duration:2 years
Interest Amount = 100,000*7*2 = 14,000/- Rs
100
Total Amount = 100,000 + 14,000 = 1,14,000/- Rs
A sum amount of 1,14,000/- rupees has to be repaid by the farmer to the bank in
a time span of 2 years (24 months) so the monthly installment is as follows:
Total amount /total time =1,14,000/24 = 4750 per month.
Hence, The farmer Myakala Sammaiah has to pay an monthly installment of Rs
4750 for the duration of 2 years.
The Agriculture credit Schemes availing by the farmer are –
1. Rythu Bandhu Scheme-
This is an agriculture credit scheme introduced by the Telangana
government. According to this scheme the farmer will receive a credit of
Rs 5000 per acre for both Kharif and Rabi Season hence the farmer
Myakala Sammaiah is receiving a credit of 7 acres * 5000=35,000 Rs /-
per 1 season and 70000Rs /- for 1 year.

2. PM Kisan Samman Nidhi Yojana-

This is an agriculture credit scheme introduced by government of
India. According to this scheme the farmer is receiving a credit of total
6000Rs for 1 year in 3 installments (2000 per Installment)