🌾 Short Terms and Long Term Agricultural Credit
⏳ Short-term Agricultural Credit
Short-term agricultural credit is primarily aimed at meeting seasonal and working capital needs of farmers, like buying seeds, fertilizers, pesticides, paying wages, etc.
The institutions involved in short-term agricultural credit include:
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🏡 Primary Agricultural Credit Societies (PACS) – Grassroot-level institutions providing short-term and medium-term agricultural loans directly to farmers.
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🏦 Central Co-operative Bank (CCB) – Operates at the district level and lends to PACS for onward lending to farmers.
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🏛️ State Co-operative Bank (SCB) – Apex body at the state level, refinances the CCBs for short-term lending.
🏗️ Long Term Agricultural Credit Institutions
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🌾 Central Co-operative Land Mortgage Bank
(also known as State Co-operative Agriculture and Rural Development Bank in some states) — provides long-term agricultural credit for capital investments like:-
🌱 Land development
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🚜 Purchase of agricultural machinery
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💧 Construction of irrigation facilities
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🏠 Farm building construction
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