Assignment By Shikha

ASSIGNMENT ON FINANCING OF AGRICULTURAL INPUTS DISTRIBUTION SUBMITTED TO: Mr. Kapil Kathuria

S U B M IT T E D B Y: S h ikh a M ohan H -0 8 -M B A -3 6

INTRODUCTION § Finance is considered as essential lubricant. § The farmer needs finance for various kinds of agri inputs like seeds, fertilizers, pesticides, agri machinery etc. § Similarly agro traders also require finance for purchasing and timely supply of agri inputs.

D iffe re n t b a n k s p ro v id in g d iffe re n t sch e m e s to a g ro d e rs §STATE BANK OF tra INDIA:

1 . Retail Purpose : repairing Margin :

Trade Scheme : For purchase, renovation and of equipment. Up to Rs.25,000 -- No Margin Rs.25,000 to Rs. 50,000 -- 20 % Above Rs. 50,000 -- 25 %

2 . SBI Shoppe Scheme :

Purpose : §Purchase of new/ old shops/establishments/ offices. §Modernization/ expansion of establishments/ shops etc. §All furniture, electrical fittings required for shops/ offices. Margin : * 25% * 40% in respect of purchase of

3 . Traders Easy Loan Scheme : Purpose : To meet normal business requirements Margin : 35 % ROI : 13% for TL and 12.5% for cash credit limit §STATE BANK OF PATIALA 1 . General Purpose Scheme For Trade and Service Sector : Purpose : To finance borrowers doing any lawful Trading/ Service activities. Margin : UptoRs 25,000 – nil , Above Rs. 25,000 – 2 . 20 SBP Shoppe % to 25% Scheme : Purpose : To meet credit requirement for purchase of new/ old/ shops and for their renovation, modernisation. Margin : 25% ( 40% for purchase of old property 3 . Laghu) Udhyami credit card ( LUCC ) Scheme : Purpose : To meet credit requirements of SMEs Margin : 25%

§STATE BANK OF MYSORE: 1 . Scheme for traders – Liberalised Trade Finance Purpose : To meet credit requirements of retail traders/ wholesale traders/ small business enterprises. Nationalized Banks providing Schemes to Margin : 25% to 30% agro: traders SYNDICATE BANK 1 . Synd Vyapar : Purpose : To meet credit needs of traders Margin : 40% on immovable property , 15% on other securities ROI : Upto Rs.2 lakhs: PLR, Above Rs.2 lakhs: depend 2 . on Synd CR Swarozgar Credit Card : Purpose : For the benefit of small farmers Margin : Upto Rs. 25,000 – Nil ,Above Rs.25,000 – 15% to 25% ROI : PLR 3 . Retail Credit Card : Purpose : To ensure timely availability of

§UCO BANK 1 . UCO Trader Loan : Purpose : For financing WC and T.L. needs of retail and wholesale trading activities ROI : BPLR -- .50% i.e. 11.75% p.a. §UNITED BANK OF INDIA 1 . United Trade Credit : Purpose : Provision of WC as well as Block Capital finance for the purpose of b/s in the form of Overdraft or TL. Margin : 40% on mortgaged property ROI : BPLR + .75 i.e. 12.75% §NABARD 1 . Distribution of agri inputs Purpose : Provide credit to cooperative banks for stocking and distribution of agri inputs by way of sanction of yearly limits. Repayment : 120 days

CONCLUSION :

•Agriculture development contributes to National Income and also leads to growth of national output. •Govt. provide certain schemes, loans, policies to farmers at low ROI for agricultural development. •Similarly, for the same purpose govt. provide financial facilities to agro traders for timely supply of agricultural inputs to the farmer.