A STUDY ON AGRI LOAN PRODUCTS OF IDBI BANK IN

TEZPUR

A report on Summer Internship submitted as course requirement of the programme of Master of

Business Administration at the School of Management Sciences, Tezpur University

Organization: IDBI Bank, Tezpur

Under supervision of

Academic Guide Organization Guide

Dr. Arup Roy Shri Hare Krishna Saikia

Associate Professor Branch Head, Tezpur

Submitted by
Subham Sonar
Enrolment No: BAM21014

Department of Business Administration

Tezpur University

October, 2022
 STUDENT DECLARATION

I, Subham Sonar, a student of Department of Business Administration under the School of

Management Sciences, Tezpur University hereby declare that I have completed my summer
internship project in IDBI Bank Limited on the project titled “A Study on Agri loan products of
IDBI Bank in Tezpur.” The contents of the report are written by me & exclusively based on my
own experience during the period of my internship and this project has not been submitted in any
form for any degree or diploma under other University or such Institution.

Subham Sonar
MBA 3rd Semester
Enrollment No: BAM21014
Department of Business Administration
Tezpur University

i
 ACKNOWLEDGEMENT

This project would not have been successful without the help of all those who guided me and gave
me an opportunity to successfully complete my internship. At the onset, I would like to thank
Anirban Biswas, Zonal HR of IDBI Bank Ltd, for giving me this internship opportunity to get
acquainted with the financial sector of a company. I am deeply grateful to Hare Krishna Saikia,
Branch Head,IDBI Bank Ltd, for his cooperation and without whose guidance it was impossible
for me to conduct this study. I would also like to thank Bhawana Sharma, Assistant Manager, IDBI
Bank Ltd, as well as the other members of IDBI Tezpur Branch for extending their immense
support & valuable advice.

I acknowledge the support and encouragement extended for this summer internship project by
Tridib Ranjan Sarma, HOD of Department of Business Administration and Dr. Chandan Goswami
, Dean of School of Management Sciences of Tezpur University.

I would also like to give my heartiest thanks and deep sense of gratitude to my Academic guide,
Dr. Arup Roy, Associate Professor, Department of Business Administration, for his guidance,
support and encouragement throughout my project. His time and advice are highly appreciated.

Lastly, I would also like to thank my team members and seniors of the company and my friends
who offered their valuable opinions and suggestions and sometimes critical views, throughout the
report and helped me to enhance my knowledge. Last but not the least; I would like to thank my
parents who have been a continuous support throughout the entire internship journey.

ii
 CERTIFICATE

This is to certify that Subham Sonar, a student of MBA 3rd Semester of Tezpur University has carried
out the project report entitled “A Study of Agri Loan products of IDBI Bank in Tezpur” as partial
fulfillment of the requirements for Master in Business Administration (2021-2023) under my guidance
and supervision. It is also certified that the report presented embodies the original work of the student
and is not submitted to any other university for any degree or diploma.

Dr. Arup Roy

Associate Professor

Department of Business Administration,

Tezpur University

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 PREFACE

Agriculture has always been the important sector and it contributes a considerable amount to the
Gdp and the overall success and growth of the country. It has always been the primary source of
employment and almost more than half of the population of the entire county is engaged in
agricultural and its allied activities. So Agricultural credit are important source to finance these
activities. There is a tremendous need for proper agricultural credit as without financial support &
investments agricultural developments are not at all possible.

This research aims to understand the various loans that are available for the purpose of undertaking
agricultural activities. It looked at the criteria and the essential requirements of the loan and the
manner the loans are disbursed. It is mainly carried out in respect to the IDBI bank and the different
products that is available under Agri loan and also aims to know the loans that is most preferred and
availed by the customers under Tezpur branch. My information is made up of a mix of primary and
secondary sources.

iv
 EXECUTIVE SUMMARY

Project title:

A study on Agri loan products of IDBI Bank in Tezpur.

Objectives of the study:

i. To study the reasons for availing of Agri Micro Loan widely by the customers

ii. To study the reasons for availing of Agri Gold Loan widely by the customers.

iii. To make a comparative study of interest rates charged by different banks in terms of Agri loans.

Scope of the study:

The extent of the study is done in order to know and understand the various agricultural loans
provided by IDBI Bank Ltd. This study will also help in understanding the ground reality that is
associated with these loans and the factors that are taken into consideration while availing
agricultural loans by the customers.

Research Design of the Survey:

For the study, the structured Questionnaire was presented and the respondent’s responses were
collected through direct interaction. Details regarding the primary data collection include sample
population, sample size, sample procedure and area covered are discussed below.

Population:

The population for the study is the respondents of the Tezpur town only.

Procedure:

The sampling procedure used for the survey is convenience sampling which is a non-probabilistic
sampling.

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Sample Size:

The sample size taken for the study is 100 respondent.

Period of the study:

The study was conducted from 1st June to 26th July.

Area of the study:

The area of the study was limited to Tezpur District of Assam only.

Sources of Data:

Both primary and secondary data are considered for the study

1. Primary data: It is gathered through questionnaire survey and direct interaction with the
respondents.

2. Secondary data: It is duly collected from the official banking website of IDBI Bank Ltd.,
internet, books and research papers.

Major Findings of the study:

1. Micro loans i.e. SHG/JLG loan, Agri Gold Loan, KCC under Agri products are mostly opted
by the customers.

2. Majority of loans are sanctioned within a period of 15 to 30 days.

3. Majority of the respondents are satisfied with the terms and conditions.

4. The services rendered by the bank are satisfactory.

5. Low Interest rate & processing rate plays an important role in availing agricultural loans

6. Margin Rate also is also one of the important driver in availing such loans.

Limitations:

The study is not free from limitations. It has following limitations. The study cannot be
generalized on a bigger context as it was restricted to Tezpur Town only and also suffers from
time constraints. However it was tried to give full justice and analyze the topic in detail.
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 Table of Content

Sl.no Title of Contents Page

No.
Students Declaration I
Acknowledgement ii
Certificate Iii
Preface iv
Executive Summary v-vi
1 Introduction to the Topic 1-2
2 The Company Profile 4-16
3 Literature Review 18-24
4 Research Methodology 26-28
5 Reasons for availing of Agri Micro Loan 30-38
6 Reasons for availing of Agri Gold Loan 40-48
7 Comparison of interest rates of Agri loans. 50-52
8 Findings & conclusion 54-55
9 Recommendations 57
10 References 59-60
11 Annexure 62-65

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 Lists of Tables

Table Title of Table Page No.

No
3.1 Research Plan 27
5.2 Responses of Loan Accounts 30
5.3 Educational Qualification of Respondents 31
5.4 Agri Loan Product Preferences 32-33
5.5 Sanctioning Time for Micro loan responses 33-34
5.6 Terms and Conditions of Micro loans responses 35
5.7 Documentation & procedure facility responses 36
5.8 Responses on Interest Rate 37
6.2 Responses of Loan Accounts 40
6.3 Gold Security Responses 41-42
6.4 Processing Fee on Agri Gold loan responses 42-43
6.5 Margin rate on Agri Gold loan responses 44-45
6.6 Quick sanctioning & disbursement responses 45-46
6.7 Sanctioning Time for Agri Gold loan responses 46-47
7.2 Interest Rates charged by IDBI Bank 50-51
7.3 Comparison of Interest rates of Agri loan products 52

viii
 LIST OF FIGURES

Fig. No List of Figures Page No.

5.2 Responses of Loan Accounts 30

5.3 Educational Qualification of Respondents 31
5.4 Agri Loan Product Preferences 33
5.5 Sanctioning Time for Micro loan responses 34
5.6 Terms and Conditions of Micro loans responses 35
5.7 Documentation & procedure facility responses 36
5.8 Responses on Interest Rate 37
6.2 Responses of Loan Accounts 40
6.3 Gold Security Responses 42
6.4 Processing Fee on Agri Gold loan responses 43
6.5 Margin rate on Agri Gold loan responses 45
6.6 Quick sanctioning & disbursement responses 46
6.7 Sanctioning Time for Agri Gold loan responses 47
7.3 Comparison of Interest rates of Agri loan products 51

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 CHAPTER1:

INTRODUCTION TO THE TOPIC

1.1 Agri Loans

Agri Loans are the loans used by farmers to finance seasonal farming operations or associated pursuits
like raising livestock, growing horticulture, or buying land or farm equipment. Additionally, this kind
of financing aids in the acquisition of crop cultivation and harvesting inputs including seeds, fertilizer,
pesticides, and emerging labor.
In addition, Purchasing land or agricultural equipment, storing and transporting produce, the cost of
preparing land for sowing, weeding, and transplantation, as well as other expenses, are also covered
by agricultural loans.

1.2 Importance of Agri loans

An important objective of policy is enhancing the ability of agriculture in emerging nations to produce
food. A major section of the population in all developing nations, especially in rural regions where
poverty is more severe, depends directly or indirectly on the agricultural sector for their means of
subsistence. Thus, an expanding agricultural sector helps to both drive general growth and reduce
poverty.
The expansion of arable land is severely constrained by both the physical scarcity of appropriate land
and environmental priorities, productivity is given special attention in the context of the rise of food
and agriculture. Additionally, the discrepancy between actual and technically achievable yields for
the majority of crops suggests that there is much room for improving agricultural and food production
even with additional Improvements in technology.
One of the most fundamental resources for carrying out this technological improvements is to provide
them with adequate funds to finance their activities. Agricultural credit is very critical for the success
and the overall growth of the agricultural sector and these are specially meant for adapting to the
specific financial needs of the farmers which are determined by planning, harvesting and marketing
cycles.

1.3 Economic Significance of Agri loans

1) Agri loans plays a critical and essential role in the agricultural, social and economic development
of the nation both at macro and micro level.

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2) It boosts the agricultural industry and increases productivity of limited resources. The newly
developed potential seeds are combined with inputs in appropriate / requisite proportions will result
in increased productivity.
3) The Agricultural finance helps to raise the agricultural productivity and directly contribute to the
GDP of the country.
4) The expansion of agricultural assets and the infrastructure that supports them, given by investment
activities, raises income levels, which raises the standard of life for rural populations.
5) Farm finance is equally effective at lowering inter-farm asset and wealth differences as it is at
reducing regional economic disparities.
6) Agricultural finance functions as a link both forward and backward connections to macroeconomic
growth.
7) Due to the traditional and subsistence character of Indian agriculture, agricultural finance is
required to provide the necessary infrastructure to allow the adoption of modern technology.
8) Major finance is required to complete large and small projects, electrify rural areas, establish
fertilizer and pesticide facilities, carry out agricultural development programmes, and implement
poverty alleviation initiatives across the nation.

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 CHAPTER 2:
The Company Profile

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1.1 Company Profile
Industrial Development Bank of India Limited (IDBI) was constituted under the Industrial
Development Bank of India Act, 1964 as a Development Financial Institution (DFI) and came into
being on June 01, 1964. It was regarded as a public Financial Institution in termsof the provisions
of section 4A of the Companies Act, 1956. It continued to serve as a DFI for 40 years till the year
2004 when it was transformed into a Bank.

2006- Merger of United Western Bank with IDBI Bank Ltd.

On October 03, 2006 the United Western Bank Ltd. (UWB), a Satara-based private sectorbank,
was amalgamated with IDBI Ltd., in terms of the provisions of section 45 of the Banking
Regulation Act, 1949

2008- Change of name of IDBI Ltd to IDBI Bank Ltd.

To truly capture its widened business functions, the name of the Bank was changed to IDBIBank
Ltd. With effect from May07, 2008, upon the issue of the fresh Certificate of Incorporation by the
Registrar of Companies, Maharashtra.

2011- Merger of IDBI Home Finance Ltd and IDBI Gilts with IDBI Bank Ltd.

Two wholly-owned subsidiaries of IDBI Bank Ltd. viz. IDBI Home Finance Ltd. and IDBIGilts
Ltd. were amalgamated with IDBI Bank Ltd.

2018 & 2019 - Re-categorization of IDBI Bank Ltd. as a Private Sector Bank

On 29 June2018, Life Insurance Corporation of India got a technical go-ahead from the Insurance
Regulatory and Development Authority of India (IRDAI) to increase its stake inIDBI Bank upto 51
%. Accordingly, IDBI bank was categorized as a ‘Private Sector Bank’for regulatory purposes by
the Reserve Bank of India with effect from 21 January 2019 consequent upon Life Insurance
Corporation of India acquiring 51% of the total paid-up equity share capital of the bank.

Currently the Chairman of IDBI Bank Ltd. is Mr. T.N. Manoharan and the Managing Director
and CEO is Mr. Rakesh Sharma

As a universal bank, IDBI Bank Ltd. touches the lives of millions of Indians through a wide array
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of banking products and services. Besides, the Bank has an established presence in associated
financial sector businesses including capital market, investment banking and mutual fund
business. The Bank’s very business philosophy is characterized by the commitment to provide
relevant financial solutions, ensure maximum customer convenience through easy access to
branches and ATMs as well as digital offerings. Goingforward, IDBI Bank is strongly committed
to work towards emerging as most preferred and trusted bank enhancing value for all stakeholders.

1.2 Vision and Mission

Vision and Mission are the milestone and parameters which help a company stay on the tract of
its operations.

IDBI’s Vision: To be the most preferred and trusted bank enhancing value for allstakeholders.

IDBI’s Mission:
i. Delighting customers with excellent service and comprehensive suite of best-in-class
financial solutions.
ii. Touching more people’s lives with expanding retail footprint while maintainingexcellence
in corporate and infrastructure financing.
iii. Continuing to act in an ethical, transparent and responsible manner, becoming therole model
of corporate governance.
iv. Deploying world class technology, systems and process to improve businessefficiency and
exceed customers’ expectations.
v. Encouraging a positive, dynamic and performance-driven work culture to nurture
employees, grow them and build a passionate and committed work force
vi. Expanding global presence.
vii. Relentlessly striving to become a greener bank.

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1.3 LOGO AND SLOGAN

IDBI logo is composed of two parts- an emblem which can be used on its own or place d on the left
from the logotype. In the first case, it is an orange and white symbol. In the first case it is an orange
and white symbol and in the second it is a solid green horizontally oriented rectangle with white and
orange elements on it.
The IDBI emblem is a stylized monogram which looks like a smooth orange flower with the
lowercase letter “l” in the middle. The symbol also resembles an abstract human figure.
As for the color palette of the IDBI Bank visual identity it is based on the combination of green,
orange and white, a very patriotic for India combination, which also looks lively and energetic and
evokes a warm, caring sense along the feeling of reliability and trustworthiness.
The logo of the company was created in 1964 and hasn’t been changed at all since that time. The
only change made by the designers was in the expansion of the emblem to a complete badge with
the lettering.
The Bank has come up with various taglines such as “Banking for all”, “Aao Sochein bada”, “Bank
Aisa Dost Jaisa”.

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1.4 MAJOR COMPETITORS
Top Performing Public Sector Banks
a. Andhra Bank
b. Allahabad Bank
c. Punjab National Bank
d. State Bank of India
Top Performing Private Sector Banks
a. HDFC Bank
b. ICICI Bank
c. AXIS Bank
d. Kotak Mahindra Bank
Top Performing Foreign Banks
a.Citibank
b.Standard Chartered
c.HSBC Bank
d.American Express

1.5 PRODUCTS & SERVICES

The product and services of IDBI Bank are offered under five different heads- Personal, Corporate,
MSME, Agri and NRI Banking.
IDBI Personal Banking
In the Personal Banking segment, IDBI offers the following products and services which includes
Preferred banking, loans, Savings Accounts, Flexi Currents Accounts,24 Hour Banking, Corporate
Payroll Banking, Fixed Deposits and Lockers etc.
IDBI Corporate Banking
In the corporate Banking segment, IDBI offers the following products and service which includes
Fund based Assistance, Trade Finance, Non Fund based Assistance, Cash Management services
etc.
IDBI MSME Banking
In the MSME Banking segment, IDBI offers the following products and services which includes
MSME Finance, Vendor Finance Program, Finance to Medical Practitioners, Loan against
Property, Loans to small roads and Water Transport, Funding under Credit Guarantee Fund Trust
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for Micro and Small Enterprises, General Credit Card Loan etc.
IDBI NRI Banking
In the NRI Banking segment, IDBI offers the following services which includes Foreign Accounts,
Remitting Funds and Foreign based fund transfer.
IDBI Agri Banking
In the Agriculture Banking segment, IDBI offers wide variety of products which includes
a. Agri Micro loan
b. Agri Gold loan
c. Farm Mechanization Loan
d. Warehouse Receipt Finance
e. Kisan Credit Card (KCC) etc.
The following products are discussed in details below

IDBI MICRO LOAN

Overview
It denotes extending very small loans to underprivileged borrowers who typically lack collateral
security, regular employment and a demonstrable credit history. It is designed not only to support
entrepreneurship and alleviate poverty, but also to empower women and to uplift communities by
extending financial services.
Bank extend micro loans to the economically weaker sections including small & Marginal farmers,
Artisans, Landless laborers, etc. to fulfill the funding needs for their occupations. As per RBI
guidelines credit facilities extended to these sections of borrowers is categorized as Primary Sector
Lending. This product aims at supporting entrepreneurship and to empower women by extending
financial services and also increases the customer base besides increasing the Primary Sector
Lending.
Eligibility Criteria
a. Age: Min 18 years, Max 65 years (at maturity of the loan).
b. The applicant should score minimum of 55% in the product scoring model.
c. For lending to group viz. SHG & JLG bank linkage directly through Branch/ individual
BC/BF the minimum stipulated score is 70% & 60% respectively.
d. Income criteria: Household annual income not exceeding Rs 1 Lakh in rural areas and Rs
1.60 Lakh in non-rural areas and declaration to that effect obtained from applicant, if
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 applicable.
e. Annual Income criteria are not applicable for other activities.
f. Branches to adhere to NABARD/RBI guidelines while sanctioning loans to SHG/JLG
(Appendix).
g. Proposals sourced through corporate BC/BF s may be considered based on approval terms
of the agreement.

Target Clientele
a. Individuals preferably small & marginal farmers, agricultural laborers, tenant farmers, oral
lessees, share croppers, micro entrepreneurs, members of SHG/JLG and SHG & JLG for
all income generating activities irrespective of household annual income criteria.
b. Not to offer to salaried borrowers and for Non PSL activities.
c. Individuals micro loans cases received through government organizations/NULM may be
sanctioned by branches. Individual micro loans through branch channel other than
mentioned above are prohibited.
d. Individual’s micro loans to be done only through Non individual BC/bf channel where
collection mechanisms by Corporate BC/Collection agents etc. are available.

Nature of Product
Term Loan-Thrust may be given for financing agricultural & allied activities of small &
Marginal farmers, agricultural laborers, tenant farmers, oral lessees, share croppers, SHG,
JLGs and micro enterprises for productive activities resulting in additional income for the
household. Consumption Loans also be considered for poor households for following
purposes-
a. Education, health and household expenses.
b. Loans provide to SHG/JLG for activities other than agriculture or MSME viz. loans for
meeting social needs, considering or repair of house, construction of toilets or any viable
common activity started by the SHGs not exceeding Rs 2 lakh.
c. Repaying of high cost debt etc.
Cash Credit Facility- CC facility may be offered to SHG/JLGs only and not to the members
of SHG/JLG and individuals.
Amount of Loan/facility
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a. Minimum Rs 0.10 Lakh &Maximum Rs 1.00 Lakh per individual borrowers/members of
SHG/JLG, subject to the limit of Rs 10 Lakh for SHG/JLG.
b. Maximum Rs 25 lakh for SHG/JLG sourced through corporate BC/BF route.
c. Maximum amount under IDBI Day NRLM & IDBI Day NULM will be as per the specified
guidelines under the product.
d. Total indebtness of borrowers for both SHG/JLG should not exceed Rs 1.25 lakh per
borrower or members. A declaration to that effect to be obtained.

Margin - NIL

Repayment Period
a. For Term Loan
Minimum: 12 months &Maximum: 6o months (including moratorium) No prepayment
charges to be levied.
b. For Cash Credit
3 years validity with annual review.

AGRI GOLD LOAN

Overview
In general in our country people prefer to invest their surplus in the form of gold ornaments
because of its easy liquidity. Therefore farmers prefer to contract exposure against pledge of
their gold ornaments to meet their temporary cultivation needs and social obligations given the
reluctance of formal lending institution to loan such entities without a proven track record. The
unorganized sector, comprising local moneylenders, Shroff have traditionally dominated the
gold loan market for many decades and still commands nearly 75% of the market and have been
providing loans against gold at a higher rate of interest.
In view of the above nature of the product and in order to meet customer expectations the product
is viewed with certain modifications in product features and the operational procedures. This
would enable to market the product and reduce the turnaround time thus meeting the
expectations of the customers as well as grow the portfolio.

Eligible Entities
Individuals
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Target Clientele
Loan to farmers against security of gold ornaments to meet the expenses of agricultural
operations & allied activities.
Nature of loan
Short term loan
Tenure
Minimum 3 months &Maximum 12 months
The entire loan should be cleared within 12 months from the date of the sanction.
Interest
Interest calculation will be done as per guidelines issued by the RBI/NABARD for agricultural
loans
Amount of Loan
a. Minimum Rs 10,000
b. Maximum Rs 10 lakhs (limit upto Rs 3 lakh availed for growing of crops to be covered
under RBI and State Government Subvention Scheme)
c. Special Approval needs to be obtained from Regional Head (ABG) for sanctioning loan
amount Rs 10 lakh. However Maximum loan to be sanctioned is capped at Rs 15 lakh per
borrower.
Eligibility Criteria
a. The applicant should be engaged in either farming or allied activities.
b. The applicant should not be a defaulter to any bank. This is to be ensured by either self-
certification or local community enquiry.
c. The prospective borrower should have open savings book account with the branch and
disbursement of gold loan to be made through S/B only.
Security
a. Pledge of gold ornaments of 18 carat gold and above purity.
b. Gold coins issued by the bank may be accepted.
c. Ornaments only of 18 carat gold and above purity to be considered and value of other
stones and wax, if any, to be ignored.
The pledged articles should be kept in properly sealed packets and held in the joint custody
of the key holders.

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Processing Fee
a. Processing fee not to be charged for loans for agricultural purposes upto Rs 25000.
b. For loans above 25000: 0.25% of the loan amount or Rs 300 whichever is less.
Additionally the borrower shall pay the stamp duty if applicable and valuation charges.
This would be deducted from the amount of the loan as far as the stamp duty is concerned
practices followed by the PSB in the vicinity of the branch may be followed.
c. Appraiser fee: 0.25% of the loan amount subject to maximum Rs 300 per loan. The
borrower shall pay the appraiser fee. Branches to take due care of TDS requirement while
making payment to appraiser. This would be deducted from the amount of loan.
d. BH to negotiate the appraiser fee considering the local conditions with cap of Rs 300
per loan
Margin
a. Hall Market GOLD jewellery- 20% Margin, for others 25%.
b. For women borrowers’ margin may be further relaxed by 5%.
Repayment Schedule
Loan to be repaid in monthly/quarterly/half yearly installments or by lump sump payments.
The repayment schedule so fixed should depend upon type of agricultural/allied activities and
cash generation from the enterprises /repayment capacity of the borrower. However security
to be released only after closure of the loan A/c Not to release of part of security.

KISAN CREDIT CARD (KCC)

Purpose
a. To meet short term credit requirements for crop cultivation.
b. Working capital for Animal Husbandry & Fisheries.
c. Post-Harvest expenses.
d. Produce Marketing Expenses.
e. Consumption requirements of framer Households
f. Working capital for maintenance of Farm Assets and activities allied to agriculture.
g. Investment credit requirements for agriculture and Allied activities.

Nature of Loan
Cash Credit with a separate sub limit for investment credit component, if applicable.
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Tenure
The card would be valid for 5 years, of which crop loan and working capital components has to
be renewed annually.
Eligible Entities
Crop Cultivation
A.Farmers- Individuals/Joint borrowers who are owned cultivators.
B.Tenant farmers, Oral lessees & Share Croppers.
C.SHG/Joint Liability Groups of farmers including tenant farmers, croppers etc.
D.KCC under corporate tie ups: Sanctions to be permitted only on cultivation of own land. No
sanction to be permitted for cultivation on leased land.
Animal Husbandry & Fisheries
A.Island Fisheries and Aquaculture
• Fishers, Fish farmers(individuals & groups/partners/share croppers/ Tenant farmers), SHG,
JLG & women groups
• The beneficiaries must own or lease any of the fisheries related activities such as pond,
tanks, open water bodies, rearing units, possess necessary license for fish farming and
fishing related activities.
B. Marine Fisheries
Fishers, Fish Farmers (individuals & groups/partners/ Share croppers / tenant farmers ), SHG,
JLG and women groups, who owns or lease registered fishing vessel/ boat, possess necessary
fishing license/ permission for fishing in estuary and sea, fish farming/ marine culture activities
in estuaries and open sea and any other State specific fisheries and allied activities.
C.Poultry & Small Ruminant
Farmers, poultry farmers either individual or joint borrowers JLG or SHG including tenant
farmers of sheep/ Goats/ pigs /poultry / birds / Rabbits and having owned / rented/ leased sheds.
D.Dairy
Farming and Dairy farmers either individual or joint borrowers, JLG/SHG including including
tenant farmers having owned/ rented/leased sheds.

Eligibility Criteria
a. No overdue with any bank/ institution.
b. Experience/Knowledge of farming is preferable but not mandatory.
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c. CIBIL report to be generated and per used in all cases at the time of sanction & renewal
of the facility (i.e. after completion of 5 years) for making credit decision. However,
generation of CIBIL reports is not mandatory during annual reviews of KCC loans for
loans upto Rs 15 lakh. For loans above Rs 15 lakh Cibil report to be generated at the time
of annual review.
d. CIBIL Report may not be generated for sanction of KCC loans backed by Gold as security
in line with exclusion policy for generation of CIBIL reports for Gold loans. Instead, a
declaration should be obtained from borrower that he/she is not availing interest
subvention benefits under KCC facility from any other Bank/FI. However, if felt
necessary by sanctioning authority, CIBIL Report may be generated and perused for KCC
Gold loans for their existing exposure and also for taking suitable credit decision.
e. Extent CIBIL Guidelines to be followed for sanction/renewal of KCC loans.
Loan Amount
For Crop Cultivation: Maximum Rs 1 crore. However cases upto Rs 10 cr may be considered
by delegated authority on case to case basis.
Working capital for Animal Husbandry & Fisheries: Maximum Rs 2 lakh.
Cases above Rs 2 lakh to be considered under Dairy loan/ respective product for allied
activity as applicable.
For KCC loans with Gold as Collateral security
Maximum 3 lakh including crop loan plus Working capital limit for Animal Husbandry &
fisheries with maximum sub limit upto Rs 2 lakh. The limit to be assessed based on SOF for
crop cultivation carried out on owned/ leased land as well as for allied activities.
Maximum limit to be disbursed to the borrower would be lower of
A.Value of gold ornaments after deduction of margin
B.MDL of the year for which limit is proposed.
C.Disbursement amount requested by the borrower.

WAREHOUSE RECEIPT FINANCE

Overview
The Bank extends financial assistance to farmers, partnerships firms and limited companies
against pledge of agricultural commodities. Farmers who want to store their produce in
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warehouses to avoid distress sale immediately after harvest, processors/ traders who want to
procure large quantities of produce during the season and process/ sell over a period of time
can benefit from the scheme.
Eligible Entities
Individual farmers, Traders, Firms, Companies engaged in Agri allied activities, FPC, FPO
& Food and Agro Processing units.
Eligible Commodity
Paddy, Wheat, Maize, Mustard, Cotton (including bales), Castor, Turmeric etc.
Loan Amount
a. Farmer- Maximum amount of Rs. 50 lakh
b. Raders: Maximum amount of Rs. 10 crore
c. Processor: Maximum amount of Rs. 15 crore.
Tenure
Short Term Loan- maximum of 12 months from the date lodging commodities or shelf life
of the product.

IDBI FARM MECHANIZATION LOAN

Overview
If a farmer requires working capital so that they can either purchase new farming machineries
or upgrade their existing ones such as purchasing a new tractor or getting an old one repaired,
then they can apply for these types of loan schemes.
The product aims to give credit for purchase of farm machinery/ Irrigation equipment for
agricultural operations. The scheme covers activities ranging from purchase of tractors and
accessories, power tillers, combine harvesters, power sprayers, dusters, threshers etc.
Eligibility Criteria
For pump set/Irrigation equipment Farmer should own a minimum of 2 acres of irrigable
land. For Farm machinery following is the minimum irrigated land.

a. For power tillers- 2 acres

b. For tractor with power upto 35HP- 4 acres
c. For tractors with power above 35HP- 6 acres
d. For combine harvesters- 8 acres
Page | 15
Loan Amount
Minimum; Rs 30,000
Maximum: Rs 30 lakhs
Repayment Schedule
Pump set
Minimum and Maximum repayment period including gestation period is 9 years and the loan
installment period is yearly with gestation period of 11 months
Sprinkler/Drip Irrigation
Minimum and Maximum repayment period including gestation period is 10-15 years and the
loan installment period is yearly with gestation period of 11 months.
Tractor/Power Tiller/Harvester
Minimum and Maximum repayment period is 5- 9 years. And the loan installment period can
be yearly or half yearly and there is no gestation period.

Page | 16
.

CHAPTER 3:
Literature Review

Page | 17
2.1 Literature Review

In this chapter, we will look into past research that has been done on the topic matter of the chapter.
Gaining extensive information on the study on the study area is aided by having a brief idea of the
studies pertinent to the study’s substance. This examination also aids in better understanding of the
study’s many components and elements. In this vein, the focus of this chapter is on investigating
numerous studies related to the Agricultural loan and its products.
The material for this study was compiled from journal articles, report produced by private
organization, and studies undertaken by specific organization.

Onyiriuba, L., Okoro, E.U.O. & Ibe, G.I. (2020) in their paper titled “Strategic government policies
on agricultural financing in African emerging markets” studied how the government seeks to address
the financing issues as well the constraints on access to finance by the farmers and the policy response.
It involved the review of empirical literatures and government policies on agriculture financing. The
study focuses on government policy and seeks to address to address the financing issues in agriculture
through policy interventions. The findings imply that government should gear financing policies to
boost output and the authorities should seek to get rid of bottlenecks, ease participation and redress
constraints on access to finance in agriculture through policy interventions as a means of sustainable
economic growth.

Hartarska,V., Nadolnyak,D. & Shen,X. (2015) in their paper titled “Agricultural credit and
economic growth in rural areas” sets out to establish link between finance and economic growth in
rural areas. It uses two alternate panel data sets and fixed effects models to estimate the causal effects
of credit supply on agricultural GDP growth per rural resident. The findings implies that there is a
link between finance and economic growth in rural areas. They find a positive association between
agricultural lending and agricultural GDP growth which establishes a link between credit and
economic growth in rural areas during that period, attributable to the lending by FCS institutions and
by commercial banks.

Raifu, I.A.& Aminu, A.(2020) in their paper titled “Financial development and Agricultural
performance in Nigeria: what role do institutions play?” sets out to examine the nexus between
financial development and agricultural performance with a view to investigate the role of

Page | 18
institutions.it employed annual data spanning from 1981 to 2016 and Autoregressive distributed lag
method was used to examine the effects. The findings stated that massive investment is required to
ensure in the agriculture sector and one of the factor identified is the issue of financing. The findings
showed that financial development has a positive impact on agricultural performance in Nigeria.

Ngong, C.A., Onyejiaku, C., Fonchanmnyo, D.C., & Onwumere, J.U. (2022) in their paper titled
“Has bank credit really impacted agricultural productivity in the Central African Economic and
Monetary Community?” sets out to examine the impact of bank credit on agricultural productivity. It
autoregressive distributed lag technique. The findings stated that the bank credit significantly and
positively affects productivity in the CEMAC countries. It should encourage effective ways to
increase bank credit flow to private enterprises in the agricultural sector through efficient bank’s
intermediation that will boost agricultural productivity.

Bharti, N. (2018) in his paper titled “Evolution of agriculture finance in India: a historical
perspective” sets out to explore the policy interventions in the areas of agricultural finance. It used
data from Reserve Bank of India Archives Museum at pune. The findings stated that lack of finance
is one of the major reasoning contributing to low profitability in agriculture. Various policy
interventions were performed for promoting access to finance but due to some or other reasons these
were not successful. They conclude it by saying that if these were implemented in time then it would
have taken India in one of the tops in the list of financial inclusion.

Ogouvide, T.F., Adegbola, Y.P., Zossou, R.C., Zannou, A.& Biaou,G. (2020) in their paper titled
“Farmers preferences and willingness to pay for microcredit in Benin: results from in the field choice
experiments in Benin” sets out to analyse farmers preferences and willingness to pay for microcredit
in order to facilitate their access in rural areas. The data are collected from 400 randomly selected
farmers and EAA model, MXL and LCL models were utilized. The findings stated that based on the
interest rates charged attracts more farmers as customers reviewing the combinations of the level of
the attributes associated with the nature of loan, type of loan, disbursement of periods, the waiting
period of the loan and the loan duration.

Page | 19
Chandia, A.A., Jiang, Y., Rehman, A., Twumasi, M.A., Pathan, A.G., & Mohsin, M. (2020) in
their paper titled “Determinants of demand for credit by smallholder farmers: a farm level analysis
based on survey in Sindh, Pakistan” sets out to examine the influence of socio economic
characteristics on credit demand. it used cross sectional data collected from 90 small holder farmers
and descriptive statistics, correlation and the OLS regression method was used. The findings stated
that the socio economic characteristics of smallholder farmers influence the credit demand of the
farmers.

Tuan Anh, N., Gan, C. & Anh, D.L.T (2022) in their paper titled “Does credit boost agricultural
performance? Evidence from Vietnam” investigates the short run and long run impact of agricultural
credit on agricultural GDP. It uses the IS break test and the Autoregressive distributed lag bounds test
to examine the credit agricultural performance nexus. The findings stated that agricultural credit
positively influences Gdp in both short run and long run. It also implies that the government should
focus on expanding agriculture credit as well as enhancing the efficiency of agriculture credit.

Kale (2011) in his paper titled “Productivity, annual income and indebtedness position: a comparative
study of who committed suicides with others” has stated that low productivity, low annual income,
existence of low liability gap, indebtedness and availing of non-institutional credit were roved as
important causes of misery for farmers.

Dey, S., Singh, P.K. & Mhaskar, M.D. (2022) in their paper titled “Determinants of institutional
agriculture credit access and its linkage with farmers satisfaction in India: a moderated mediation
analysis” sets out to assess the relationship between institutional credit access and farmer satisfaction.
It used the moderated mediation analysis in the SPSS to identify the relationship. The findings stated
that socio economic variables like prompt service, employee behavior and service characteristics
variables like the interest rate, loan sanction time repayment period and documents for loan
application significantly affect institutional credit adoption across the smallholders.

Pandey, B., Bandyopadhyay, P. & Guiette, A. (2019) in his paper titled “Impact of different sources
of credit in creating extreme farmer distress in India” has stated that sources of loan play a major role
in creating farmer distress and the major reasons include the grapevine bureaucracy, lengthy
documentations etc are the main barriers in the process.
Page | 20
Yadav, I.S. & Rao, M.S. (2022) in their paper titled “Agricultural credit and productivity of crops
in India: field evidence from small and marginal farmers across social groups” sets out to examine
which source of credit is creating more distress among farmers.it used different statistical methods
and found that institutional credit has a significantly positive impact on the productivity. However
the impact of institutional credit and credit productivity especially for small and marginal farmers is
not well recognized.

Mohapatra, S. & Sahoo, B.K. (2016) in their paper titled “Determinants of participation in Self Help
groups (SHG) and its impact on women empowerment” has stated that the programme has by-passed
the poorest of the poor. It stated that the participation in microfinance has a positive impact on women
empowerment.

Akoijam, S.L.S.(2013) in his paper titled “ Rural credit: a source of sustainable livelihood of rural
India” sets out to analyse the issues and concerns of rural credit. It analyzed in detail various tools of
credit. The findings stated that Rural credits serves as a tool for millions of rural Indians who don’t
have a means of livelihood and is playing a major role in providing rural credit facilities to rural India.

R.L., M & Mishra, A.K. (2022) in their paper titled “Determinants of indebtedness and institutional
credit to rural agricultural households: an empirical evidence from South India” has stated that access
to credit is strongly associated with the socio-economic and demographic characteristics of
agricultural households. Education and family size are also found to be associated with higher access
to formal credit. The socially disadvantaged have lower access to formal credit.

Kumar, A., Das, R., KS, A., Bathla, S. & Jha, G.K. (2021) in his paper titled “Examining
institutional credit among agricultural households in Eastern India: trends, patterns and determinants”
sets out to understand the pattern of credit among agricultural households. It used data from All India
Debt and Investment survey and the NSSO data. The findings stated that access to credit is strongly
associated with the socio economic and demographic characteristics of agricultural households. India
lacks access to institutional credit and so efforts must be made to include small and marginal farmers
under the coverage of institutional credit.

Page | 21
Falola, A., Mukaila, R. & Abdulhamid, K.O. (2022) in their paper titled “Informal finance: Its
drivers and contributors to farm investment among rural farmers in Northcentral Nigeria” has stated
that factors influencing farmer’s access to loans were the age, income of the farmers. Interest charged,
household size, education and loan duration were the drivers of the amount borrowed from the
financial sector.

Mohan, R. ( 2006) in his paper titled “Agriculture Credit in India: Status, Issues and Future Agenda”
has stated that while reviewing the performance of agricultural credit in India indicated that though
the overall flow of institutional credit has increased over the years, there are several gaps in the system
like inadequate provision of credit to small and marginal farmers, paucity of medium and long term
lending etc. These have major complications for agricultural developments so efforts are required to
address and rectify these issues.

Satish (2006) in his paper titled “Agricultural institutional credit, Indebtedness and suicides in
Punjab” has stated that the incidence of suicides in in Punjab has not been higher than the all India
average and studies reveal that while indebtedness is one of the major causes of suicide, it is neither
the only cause nor the main one. There is thus no direct causal relationship between institutional credit,
indebtedness and suicides in rural.

Yadav, I.S. & Rao, M.S. (2022) in his paper titled “Disparity of agricultural credit in India: Field
data evidence from farmers across social groups” sets out to examine the access and disparity of
institutional credit for small and marginal farmers. It used credit adequacy ratio, credit gap and newly
constructed Agriculture Credit Disparity Index. The findings stated the credit access is more to the
socially advantaged groups than farmers belonging to socially disadvantaged groups. The agriculture
credit policy needs to incorporate measures to eliminate credit disparity by correcting the socio-
economic profile of socially disadvantaged farmers compared to the farmers’ counterparts.

Page | 22
Falola, A., Mukaila, R. & Abdulhamid, K.O. (2022) in his paper titled “Informal finance: Its drivers
and contributors to farm investment among rural farmers in Northcentral Nigeria” has stated that
factors influencing farmer’s access to loans were the age, income of the farmers. Interest charged,
household size, education and loan duration were the drivers of the amount borrowed from the
financial sector.

Mohan, R. ( 2006) in his paper titled “Agriculture Credit in India: Status, Issues and Future Agenda”
has stated that while reviewing the performance of agricultural credit in India indicated that though
the overall flow of institutional credit has increased over the years, there are several gaps in the system
like inadequate provision of credit to small and marginal farmers, paucity of medium and long term
lending etc. These have major complications for agricultural developments so efforts are required to
address and rectify these issues.

Satish (2006) in his paper titled “Agricultural institutional credit, Indebtedness and suicides in
Punjab” has stated that the incidence of suicides in in Punjab has not been higher than the all india
average and studies reveal that while indebtedness is one of the major causes of suicide, it is neither
the only cause nor the main one. There is thus no direct causal relationship between institutional credit,
indebtedness and suicides in rural.

Yadav, I.S. & Rao, M.S. (2022) in his paper titled “Disparity of agricultural credit in India: Field
data evidence from farmers across social groups” has stated the credit access is more to the socially
advantaged groups than farmers belonging to socially disadvantaged groups. The agriculture credit
policy needs to incorporate measures to eliminate credit disparity by correcting the socio-economic
profile of socially disadvantaged farmers compared to the farmers’ counterparts.
,
2.2 Summary
From the reading, it has been comprehended that the following research studies i.e. “Disparity of
agricultural credit in India: Field data evidence from farmers across social groups”, “Agriculture
Credit in India: Status, Issues and Future Agenda”, “Examining institutional credit among agricultural
households in Eastern India: trends, patterns and determinants”, “Informal finance: Its drivers and
contributors to farm investment among rural farmers in Northcentral Nigeria”, “Determinants of
Page | 23
indebtedness and institutional credit to rural agricultural households: an empirical evidence from
South India”, “Impact of different sources of credit in creating extreme farmer distress in India”,
Determinants of institutional agriculture credit access and its linkage with farmers satisfaction in
India: a moderated mediation analysis” etc. states that inadequate access to poor farmers, socio
demographic factors age, education etc., interest rate, procedure and formalities all these affects the
availing of the Agricultural credit decisions by the farmers.
The studies have also dedicated their time towards the problem related to the agricultural credit. From
the above reading, we find the common findings that the agricultural Credit go a great extent in
improving the lives of the poor farmers, reducing the distress of the farmers ,helps in women
empowerment and support and uplift the economy and helps to transform into a welfare state.

Page | 24
 CHAPTER 4:
Research Methodology

Page | 25
3.1 Introduction
This section describes the methodology and problem statement along with limitations of the study of
the present research study. Research methodology can be simply defined as the procedure used by a
researcher in a specific sequence to identify, select and analyses the research problem. In this section,
an attempt has been made to design the research methodology that has been used for conducting this
study.
3.2 Problem Statement
The extent of India's banking system has a significant impact on the agriculture sector. The growth of
the agricultural sector and its associated industries depends heavily on the credit given by the banks;
as a result, the banks must work to improve internal management and build up early warning signals
for prompt decision-making and action. The issue with agricultural credit is deciding where to invest,
what considerations to make when applying for such loans, and how to increase productivity while
using agricultural credit. To improve services to farmers, this area needs immediate decisions, because
the performance of the banks and the sector's productivity are both impacted by the lack of an effective
system.
3.3 Objectives
The present study is aimed at achieving the following objectives:

i. To study the reasons for availing of Agri Micro Loan widely by the customers.

ii. To study the reasons for availing of Agri Gold Loan widely by the customers.

iii. To make a comparative study of interest rates charged by different banks in terms of Agri
loans
3.4 Scope of the study

The extent of the study is done in order to know and understand the various agricultural loans
provided by IDBI Bank Ltd and this study will help in understanding the ground reality that is
associated with these loans and the process carried out in disbursement of these loans.
3.5 Limitations of the study

i. As my study was restricted to Tezpur only so it cannot be generalized on a bigger context

ii. As there was time constraints the study is based on the responses of limited number of
respondents.
Page | 26
 iii. As due to limited data, I faced certain problems that proved to be a hindrance in the
process of preparing this report.

iv. As project being part of my Summer Internship program, I have tried to give full justice to
analyze the topic in detail.

3.6 Research Plan

Table 3.1: Research Plan

OBJECTIVES INSTRUMENTS SOURCE

1. Reasons for Agri Micro Loan Primary Data Respondents within
Opted by the customer Tezpur town.

2. Reasons for Agri Gold loan Primary Data Respondents within

Opted by the customer. Tezpur town.

3. Comparative study of Interest Secondary Data Bank website & other sources
Rates of Agri Loans.

3.7 Information sought for achieving the objectives

This study is mainly conducted to analyze the details of various Agri loan products to facilitate the
development of agriculture and allied activities and also to understand what are the loans under Agri
loan which are most sought by the customer and the factors that are taken into consideration while
availing such loans by the respondents this can provide meaningful insights to the banking industry
that what can be done in order to make this loan more efficient for the customers.

Under this the first step was collecting the data and it was collected from various respondents and
also various details were collected from secondary sources i.e. bank official sites and circulars and
memorandum in Tezpur Town. Next step, after collecting the data, analyzed the data and found out
the reasons which states the reasons of seeking for that particular loan by the respondents.

Page | 27
3.8 Research Methodology

I did my summer internship at IDBI Bank Ltd. and I worked under the supervision of Mr. Hare
Krishna Saikia, Branch Head, IDBI Bank Tezpur Branch. Mr. Hare Krishna Saikia assigned me the
areas that need to be covered for the research work. So, I collected data from various customers
regarding the various agricultural loans of the bank and further analyzed those data to get
meaningful information and draw conclusion on the basis of these data.

 Research Instrument:

A structured questionnaire consisting of close ended questions have been developed and used
as a medium to collect information from the various respondents.

 Sampling Plan:

Sample unit: Respondents were from Tezpur district of Assam.

Sample size: 100 respondents

Sampling procedure: A structured questionnaire was prepared and the responses were
collected directly through direction interaction with the respondents.

Time period: The study was conducted for a period of two months i.e. from 1st July 2022 to
26th August 2022.

 Sources of data collection:

1. Primary data: It is gathered through questionnaire survey and direct interaction with the
respondents.

2. Secondary data: It is collected from the official sites of IDBI Bank Ltd. as well as from its
different memorandum, circulars, journals and reports.

3.9 Tools for Analyzing the Information

Effort is taken to find out the relevant information from the data collected. The tool used for
the purpose is Microsoft Excel 2007.

Page | 28
 CHAPTER 5:

Reasons for availing of Agri Micro Loan

Page | 29
5.1 Operation Details
In this Chapter, an attempt is made to have a detailed look at the various reasons which plays a
crucial role in opting for Micro loan under IDBI Agri loan products by the customers. The data are
collected from the respondents with the use of a structured questionnaire and the analysis are
carried out with the use of MS Excel.

5.2 Agri loan account with IDBI Bank

In this table data are collected from the respondents regarding whether they possess Agri loan
account with IDBI Bank.
frequency Percent
Yes 74 74%
No 26 26%
Total 100 100%

Table showing gender wise classification of Agri loan accountholders:

frequency Percent
Male 49 67%
Female 25 33%
Total 74 100%

26%
Yes
74%
No

Interpretation
It shows that 74% percent have loan accounts in the bank and 26% percent don’t have loan accounts
in IDBI Bank. There is majority of females in comparison to males who have Agri loan accounts
with IDBI bank.

Page | 30
5.3 Education Qualification of the respondents
In this table data are collected from the respondents regarding their educational qualification and
it also presents the gender classification of the educational qualification category which has the
highest percentage.

Qualification frequency Percent

10th pass 45 45%
12th pass 10 10%
Graduation 15 15%
Post-Graduation 10 10%
None 20 20%
Total 100 100%

Table showing Gender wise classification of 10th pass qualification category

10th pass frequency Percent
Male 35 78%
Female 10 22%
Total 45 100%

10th pass
12th pass
Graduation
Post-Graduation
None

Interpretation
The graph depicts that 45% are 10th pass, 20% respondents are not educated, 15% respondents are
graduate, 10% respondents are 12th pass and the respondents with post graduate qualification are
also 10%. Moreover it is found that among the respondents who are 10th pass the highest percentage
is of females other than males.

Page | 31
5.4 Agri Loan Product preferences
In this table data are collected from the respondents regarding Agri Loan products availed by them.
It also presents the Gender & Educational category based classification of Agri Micro Loan and
Agri Gold Loan which has the highest percentage. It will help us to understand these products are
mostly sought by which sections of society.

Agri Loan Products frequency Percent

Agri Micro Loan 55 55%
Agri Gold Loan 20 20%
KCC 8 8%
Warehouse Receipt Finance 2 2%
Farm Mechanization Loan 5 5%
Others 10 10%
Total 100 100%

Tables showing Gender and Educational qualification of the respondents availing Agri Micro loan
and Agri Gold Loan

Male Percent Female Percent

Agri Micro Loan 20 62% 35 81%
Agri Gold Loan 12 38% 8 19%
Total 32 100% 43 100%

10th pass Percent 12th pass Percent Unqualified Percent

Agri Micro Loan 29 74% 8 57% 18 82%
Agri Gold Loan 10 26% 6 43% 4 18%
Total 39 100% 14 100% 22 100%

Page | 32
 5% 10%
2% Micro Loan
8%
20% 55% Agri Gold Loan
KCC
Warehouse Receipt Finance

Interpretation
The graphs depicts that most of the respondents have opted for Agro Micro loans and Agri Gold
loans followed by other loan products, KCC, Warehouse Receipt Finance & Farm Mechanization
loan. The Agri Micro loans are mostly opted by females and Agri Gold Loan are mostly opted by
males. Moreover it is availed by the customers who have an educational qualification of 10th pass.

5.5 Time Period required for sanctioning of IDBI Agri Loan

In this table data are collected from the respondents regarding the time period required for the
sanctioning of IDBI Agri loan products. It also presents into details the time required for
sanctioning of Agri Gold Loan and Agri Micro loan which is mostly availed by the customer.

No of days frequency Percent

7-14 days 20 20%

15-30 days 50 50%

31-60 days 20 20%

More than 60 days 10 10%

Total 100 100%

Page | 33
 7-14 days Percent 15-30 days Percent 31-60 days
Percent
Agri Micro Loan 8 40% 35 70% 3
15%
Agri Gold loan 12 60% 10 20% 7
35%
Others 0 0% 5 10% 10
50%

Total 20 100% 50 100% 20 100%

10% 20%
20%
7-14 days
15-30 days
31-60 days
50%
More than 60 days

Interpretation
The graph depicts that there are 50% respondents who got the IDBI Micro loan within 15-30 days
followed by 7-14 days, 31-60 days for 40% respondents and the remaining 10% respondents got
the loan within 10 days. It also presents that Agri Micro are sanctioned within time period of 15-
30 days and Agri Gold loans are sanctioned within 7-14 days and others loans take sanctioning
time ranges from 15 to 60 days.

5.6 Terms and Condition of IDBI Micro loan.

In this table data are collected from the respondents regarding how they find the terms and
conditions of IDBI Micro loans and also further analysis is carried out who is highly satisfied with
the terms and conditions.

Page | 34
 frequency Percent
Highly satisfied 29 29%
Satisfied 43 43%
Neutral 18 18%
Dissatisfied 2 2%
Highly dissatisfied 8 8%
Total 100 100%

Highly Satisfied Percent Satisfied Percent

10th pass 9 31% 21 49%
12th pass 2 7% 4 9%
Graduation 7 24% 5 12%
Post-Graduation 1 3% 3 7%
None 10 35% 10 23%
Total 29 100% 43 100%

2%
8% 29%
18% Highly satisfied
Satisfied
Neutral
43% Dissatisfied
Highly dissatisfied

Interpretation
This graph depicts that 43% respondents are satisfied with terms and conditions offered by bank,
29% are highly satisfied, 18% are neutral, 8% are highly dissatisfied and 2% are dissatisfied with
the laid terms & conditions. Moreover, the person who are unqualified, 10th pass and graduates
find the terms and conditions more satisfactory.

Page | 35
5.7 Documentation & procedure formality for availing IDBI Micro loan
In this table data are collected from the respondents regarding how they find the documentation
and procedure formality of IDBI Micro loans and also further analysis is carried out who is highly
satisfied with the terms and conditions.

frequency Percent
Highly satisfied 8 8%
Satisfied 47 47%
Neutral 18 18%
Dissatisfied 25 25%
Highly dissatisfied 2 2%
Total 100 100%

Satisfied Percent Neutral Percent

10th pass 13 28% 5 28%
12th pass 3 6% 4 22%
Graduation 7 15% 2 11%
Post-Graduation 2 4% 1 6%
None 22 47% 6 33%
Total 47 100% 18 100%

2%

25% 8% Highly satisfied

Satisfied
18% 47%
Neutral
Dissatisfied
Highly dissatisfied

Interpretation
This graph depicts that almost 47% respondents are satisfied with the documentation and
procedure formality for availing IDBI Micro loan, 8% are highly satisfied,18% respondents are
neutral, 25% respondents are dissatisfied and the remaining 2% are highly dissatisfied. Moreover

Page | 36
 the persons who are unqualified, 10th pass are mostly satisfied with the services of IDBI Bank

5.8 Low interest rate affects availing of IDBI Micro Loan

In this table data are collected from the respondents regarding whether they find low interest rate
affects availing of IDBI Micro loans and also further analysis is carried out who strongly agrees
with it.

frequency Percent
Strongly Agree 35 35%
Agree 30 25%
Neutral 23 28%
Disagree 6 6%
Strongly Disagree 6 6%
Total 100 100%

Strongly Agree Percent Agree Percent

10th pass 15 43% 10 33%
12th pass 7 20% 4 13%
Graduation 2 6% 2 7%
Post-Graduation 1 3% 2 7%
None 10 29% 12 40%
Total 35 100% 30 100%

6% 6%

35% Strongly Agree

30% Agree
Neutral
23% Disagree
Strongly Disagree

Page | 37
Interpretation
This chart depicts that almost 65% agrees that low interest rate plays an important role, 28%
respondents are neutral and almost 12% respondents are disagreeing to it.Moreover persons who
are unqualified and 10th pass strongly agrees that low interest rate is a critical factor in availing
such loans.

Findings
From the above analysis it has been found that most of the respondents avail IDBI Micro Loan and
IDBI Gold Loan. Most of the Agri Micro loan are availed by the females and they are less qualified.
The person availing Agri Micro loans are mostly unqualified, 10th pass or 12th pass. Time taken
for sanctioning also affects the availing of Agri Micro loan and also there are various other reasons
which affects the availing of Agri Micro loans which includes fast documentation and procedure
formality, easy terms and conditions, low interest rates etc. These aspects were taken care of by
IDBI Bank hence there was increase in Agri Micro loans availed by the customers.

Page | 38
 CHAPTER 6:

Reason for availing of Agri Gold Loan

Page | 39
6.1 Operation Details

In this Chapter, an attempt is made to have a detailed look at the various reasons which plays a crucial
role in opting for Agri Gold loan under IDBI Agri loan products by the customers. The data are
collected from the respondents with the use of a structured questionnaire and the analysis are carried
out with the use of MS Excel.
6.2 Agri loan account with IDBI Bank.
In this tables, data are collected from the respondents regarding whether they possess Agri loan
frequency Percent
Yes 74 74%
No 26 26%
Total 100 100%
account with IDBI Bank. It also further classifies the accountholders on the basis of their gender.

frequency Percent
Male 49 67%
Female 25 33%
Total 74 100%

26%
Yes
74%
No

Interpretation
It shows that 74% percent have loan accounts in the bank and 26% percent don’t have loan accounts
in IDBI Bank. There is majority of females in comparison to males who have Agri loan accounts with
IDBI bank

Page | 40
6.3 Gold security is an important factor in availing Agri gold loan.

In this tables, data are collected from the respondents regarding their opinion on Gold security as an
important factor in availing Agri Gold Loan and also further analysis is carried out who strongly
agrees to it and the no of male and female proportion under each head.

Strongly Agree 27%%

Agree 39%
Neutral 10%
Disagree 15%
Strongly Disagree 9%
total 100%

10th pass
Male Percent Female Percent
Strongly Agree 2 29% 7 41%
Agree 5 71% 10 59%
Total 7 100% 17 100%
12th pass
Male Percent Female Percent
Strongly Agree 3 43% 2 22%
Agree 4 57% 7 78%
Total 7 100% 9 100%
Graduation
Male Percent Female Percent
Strongly Agree 1 50% 2 50%
Agree 1 50% 2 50%
Total 2 100% 4 100%
Post-Graduation
Male Percent Female Percent
Strongly Agree 1 50% 1 50%
Agree 1 50% 1 50%
Total 2 100% 2 100%
None
Male Percent Female Percent
Strongly Agree 1 33% 7 54%
Agree 2 67% 6 46%
Total 3 100% 13 100%

Page | 41
 39%

27%

15%
10% 9%

STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

Interpretation

This graph depicts that most of the 39% respondents agree that gold security is an important factor
while availing Agri Gold loan.15% respondents disagreed to it.10% are neutral and 27 %respondents
have strongly agreed to it and rest 9% respondents strongly disagreed to it. Moreover most of the
respondents are female and are unqualified or having minimum qualification of 10 th pass.

6.4 Processing fee is an important factor while availing Agri Gold loans

In this tables, data are collected from the respondents regarding their opinion on processing fee as an
important factor in availing Agri Gold Loan and also further analysis is carried out who strongly
agrees to it and the no of male and female proportion under each head.

Strongly Agree 28%

Agree 45%

Neutral 10%

Disagree 12%

Strongly Disagree 5%

total 100%

Page | 42
 10th pass

Male Percent Female Percent

Strongly Agree 2 25% 8 40%

Agree 6 75% 12 60%

Total 8 100% 20 100%

12th pass

Male Percent
Female Percent
Strongly Agree 3 43%
2 18%
Agree 4 57%
9 82%
Total 7 100%
11 100%

Graduation

Male Percent Female Percent

Strongly Agree
1 50% 2 50%
Agree
1 50% 2 50%
Total
2 100% 4 100%

Post-Graduation

Male Percent Female Percent

Strongly Agree
1 50% 1 33%
Agree
1 50% 2 67%
Total
2 100% 3 100%

None

Male Percent Female Percent

Strongly Agree
1 33% 7 54%
Agree
2 67% 6 46%
Total
3 100% 13 100%

Page | 43
Interpretation

This graph depicts that 45% respondents agree that processing fee plays an important role,12%
disagreed, 10% are neutral, 28% strongly agreed and 5% strongly disagreed to it. Moreover most of
the respondents are female and are unqualified or having minimum qualification of 10 th pass or 12th
pass.

6.5 Margin Rate affects the availing of Agri Gold Loan.

In this tables, data are collected from the respondents regarding their opinion on margin rate as an
important factor in availing Agri Gold Loan and also further analysis is carried out who strongly
agrees to it and the no of male and female proportion under each head.

Strongly Agree 23%

Agree 40%

Neutral 20%

Disagree 12%

Page | 44
 Strongly Disagree 5%

Total 100%

10th pass
Male Percent Female Percent
Strongly Agree 1 14% 8 42%
Agree 6 86% 11 58%
Total 7 100% 19 100%
12th pass
Male Percent Female Percent
Strongly Agree 1 33% 2 18%
Agree 2 67% 9 82%
Total 3 100% 11 100%
Graduation
Male Percent Female Percent
Strongly Agree 1 50% 2 50%
Agree 1 50% 2 50%
Total 2 100% 4 100%
Post-Graduation
Male Percent Female Percent
Strongly Agree 1 50% 1 50%
Agree 1 50% 1 50%
Total 2 100% 2 100%
None
Male Percent Female Percent
Strongly Agree 1 33% 5 50%
Agree 2 67% 5 50%
Total 3 100% 10 100%

40%

23%
20%
12%
5%

STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

Interpretation

This graph depicts that 40% respondents agree that Margin rate affects the availing of Agri Gold Loan,
12% disagreed, 20% are neutral, 23% strongly agreed and 5% strongly disagreed to it. Moreover most

Page | 45
of the respondents are female and are unqualified or having minimum qualification of 10 th pass or 12th
pass.

6.6 Quick sanctioning & disbursement of funds is an important factor in Agri Gold loan

In this tables, data are collected from the respondents regarding their opinion on quick sanctioning &
disbursement of funds as an important factor in availing Agri Gold Loan and also further analysis is
carried out who strongly agrees to it.

Strongly Agree 67%

Agree 13%
Neutral 15%
Disagree 4%

Strongly Disagree 1%
Total 100%

Strongly Agree Percent Agree Percent

10th pass 25 37% 2 15%
12th pass 18 27% 5 38%
Graduation 2 3% 2 15%
Post-Graduation 3 4% 1 8%
None 19 28% 3 23%
Total 67 100% 13 100%

70%
60%
50%
40%
30%
20%
10%
0%
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY
DISAGREE

Interpretation

This graph depicts that 13% respondents agree that Quick Sanctioning & disbursement of funds is
Page | 46
crucial, 4% disagreed, 15% are neutral, 67% strongly agreed and 1% strongly disagreed to it.
Moreover, persons who are unqualified and 10th pass strongly agrees that quick sanctioning &
disbursement of funds is a critical factor in availing such loans.

6.7 Time period required for sanctioning of Agri gold loan

In this table data are collected from the respondents regarding the time period required for the
sanctioning of IDBI Agri loan products

less than 15 days 15%

15-30 days 50%

less than 60 days 25%

less than 365 days 10%

Interpretation
The graph depicts that there are 15% respondents who got the IDBI Agri Gold loan within less than
15 days, 50% within 15-30 days, less than 60days for 25% respondents and the remaining 10%
respondents got the loan within less than 365 days.

Page | 47
Findings
From the above analysis it has been found that most of the respondents who avail IDBI Gold Loan
are females and they are less qualified. The persons availing Agri Gold loans are mostly unqualified,
10th pass or 12th pass. Time taken for sanctioning also affects the availing of Agri Gold loan and also
there are various other reasons which affects the availing of Agri Gold loans which includes Margin
rate, Processing fee, Gold security etc. All of these are taken into consideration while borrowing such
loans by the respondents. These aspects were taken care of by IDBI Bank hence there was increase
in Agri Gold loans availed by the customers.

Page | 48
 CHAPTER 7:
Comparison of Interest rates of Agri loans.

Page | 49
7.1 Operation Details

In this section, we will have a detailed look at the interest rates charged by the IDBI Bank while
providing Agri products and also a comparative analysis of interest rates charged by different banks
in terms of its Agri products is carried out.

7.2 IDBI Interest rate range for Agri loans

a) Loans upto Rs.25 lakh to Small & Marginal Farmers other than KCC/Gold Loan/WHR
Loan type Minimum Maximum Average Remarks
Working capital/Short term loan. BBR -- BBR
Term loan BBR+0.50% -- BBR+0.50%

b) Loans above Rs.25 lakh & upto Rs.3 crore to Small & Marginal Farmers other than KCC/G old Loan/WHR

Loan type Minimum Maximum Average Remarks

Working capital/Short term loan. BBR+0.50% BBR+0.75% BBR+0.63% Applicable rate is
subject to rating.
Term loan BBR+1.0% BBR+1.25% BBR+1.3% -Do-

c) Loans upto Rs.3 crore to other than KCC/Gold Loan/WHR

Loan type Minimum Maximum Average Remarks

Working capital/Short term loan. BBR+1.5% BBR+2.0% BBR+1.75% Applicable rate is

subject to rating.

Term loan BBR+2.0% BBR+2.25% BBR+2.13% -Do-

d) Loans under KCC

Loan type Minimum Maximum Average Remarks
Upton Rs.3 lakh 7% p.a. -- 7% p.a. Covered under interest
subvention scheme

Above Rs.3 lakh –SFMF BBR -- BBR Applicable interest rate

at the discretion of
sanctioning authority

Page | 50
Above Rs.3 lakh – other than SFMF BBR+1.25% -- -- - Do -

Loan type Minimum Maximum Average Remarks

Crop loan upto Rs.3 lakh 7% p.a. -- 7% p.a. Covered under interest
subvention scheme
Above Rs.1 lakh to Rs.15 lakh– BBR -- -- Applicable interest rate at the
SFMF discretion of sanctioning
authority
Under PSL - - - Do –
- Upto Rs.1 lakh (other than BBR - -
Agri) under PSL BBR+0.50%

- Above Rs.1 lakh upto Rs.3

lakh BBR+1%

- Above Rs. 3 lakh to Rs.15

lakh

Non PSL -- -- - Do -
- Upto Rs.15 lakh BBR+2.5%

e) Loans under Gold loan scheme

f) Loans under Warehouse Receipt (WHR)

Loan type Minimum Maximum Average Remarks

Upton Rs.3 lakh (for KCC customer) 7% p.a. -- 7% p.a. Covered under interest
subvention scheme

Upto Rs.20 lakh –SFMF BBR -- BBR Applicable interest rate at

the discretion of
sanctioning authority

Upto Rs.5 crore for Micro BBR+0.5% -- -- - Do -

Enterprises

Other PSL cases - Do -

- upto Rs.2 crore BBR+0.75%
- Above Rs. 2 crore to Rs.15 crore
Page | 51
 - Above Rs.15 crore BBR+1.0%
BBR+2.0%

N.B -The current BBR of the bank is 9.75% p.a. A term premium may be applied over and above the applicable interest
rate in case of term loans above Rs.5 lakh.

7.3 Comparison of Interest rates of Agri loan products of IDBI banks with other Banks

Interest Rates
Loans IDBI Bank Union Bank HDFC Bank
Agri Gold Loan 7.00% 7.25% 7.60%
KCC loan 7% 7% 9%
Agri Micro Loan(SHG/JLG) 10% 10.40% 11.50%
Warehouse Receipt Finance 7% 8.40% 8.80%

Interpretation

The graph depicts the comparison of interest rates charged by the banks while providing various
Agriculture loans. In terms of Agri gold loans IDBI bank provide at a lower interest compared with
the other two and also the interest charged for the KCC loan, Micro loan and Warehouse Receipt
Finance i.e. 7%, 10% & 7% are also comparatively lower in comparison to the interest rates charged
by the other Banks.

Page | 52
 CHAPTER 8:
FINDINGS & CONCLUSION

Page | 53
This study tried to assess the responses provided by the respondents. All the information obtained has
been represented in the earlier chapters. In these chapter the findings of the analysis of the data have
been provided with respect to each objectives.

Finding with respect to Objective 1

i. It has been found that mostly the respondents availing Agri Micro Loans are poor female and are mostly
uneducated.
ii. It has been observed that time period plays a critical factor for availing this loan as 50% of the
respondent’s states that the loan is sanctioned within a time period of 15-30 days.
iii. It has been found that that the respondents are satisfied with the documentation & procedure formality
as well as with the quick sanctioning and disbursement of Funds by the banks.
iv. Moreover, it has been found that the Micro loans are made available at a very lower rate of interest and
no processing fee and with margin rate of almost nil which plays a crucial role for availing of Micro
loans by the customers.

Findings with respect to Objective 2

i. It has been observed that 66% respondents feel that gold security plays critical role for availing
Agri Gold Loan.
ii. It has been observed that 73% of the respondent’s states strongly agrees that processing fee
places a dominant role in availing such loans.
iii. It has been observed that Margin Rate & Appraiser rate plays a critical factor for availing this
loan as 73% of the respondents have strongly agreed to it in availing loans.
iv. Speedy sanctioning process and easy documentation procedures makes it more convenient for
availing such loans.

Findings with respect to Objective 3

i. It has been observed in the table that the interest rate changes with the change in the amount
of loan sanctioned.

Page | 54
 ii. It has been observed that the current BBR of the bank is 9.75% and the loans under KCC in
IDBI bank is covered under the interest subvention scheme as per guidelines issued by the
govt from time to time.
iii. It has been observed from the table that the interest rates of Agri loan products of the IDBI
Bank carry a comparatively lower interest in comparison to its counterparts. Agri Gold loan
are provided at just 7% p.a and gold loan at 7%and micro loans and warehouse loans at 10%
& 7% respectively which are provided at higher interest rate in HDFC & Union bank.

Conclusion
From all this it can be concluded that different loans under Agri products are opted by customers from
IDBI Bank because of its easy availability, lower rate of interest and easy documentation and quick
disbursement procedure. The most availed loan are IDBI Micro loan which are mostly opted by JLG
& SHG members followed by Agri Gold loan, Kisan Credit Card (KCC) as well as various other
loans are also availed by the customer but on a lower proportion. The most prominent reasons for
wide increase of such loans in IDBI Bank include the quick sanctioning, processing fee, the services
of the bank, low margin rate as well as flexible terms and conditions etc. All these factors are taken
into consideration by customers while availing such loans also there are various other factors which
come into play and are also crucial. Moreover the bank should try to make its services more better
& convenient which eases the lengthy process and makes it quick and easy and should focus in coming
up with different awareness to make the customer aware of different loans products available for
them and also the procedures and legal documents that are to be complied with.
This will not only help the bank to increase its customer base for agricultural loans but in a way to
develop the country by developing the agricultural sector by disbursement of appropriate funds in
shaping its future for a better and a developed nation.

Page | 55
 CHAPTER 9:

OBSERVATIONS

Page | 56
Observations:

From the study, it has been observed that there are certain aspects which should be taken into
consideration for increasing the customer base for agricultural loans. So adequate steps have to be
taken in this regard.

a. From the analysis it was observed customer want to get a hassle free loan and within adequate
time so the bank should make effort to process the loan within adequate time and simplify the
terms and conditions.

b. Consumer awareness program is required so that more people become aware about the
different loans available and also the different formalities that are to be complied with.

c. They should focus on proper customer care. Customer care is an area which should not be
neglected. There should be proper coordination & no communication gaps.

d. The consumer should be disclosed with proper details i.e. any kind of charges that must be
disclosed to the customer before giving loans to them.

e. It should also reduce the dependence on collateral security for providing loans and should try
to reduce the interest rates by providing with subsidies as it helps the rural poor to avail loan.

Page | 57
CHAPTER 10:

REFERENCES

Page | 58
REFERENCE.

wikepedia.(n.d.). Retrieved from https://en.wikipedia.org/wiki/Farm_operating_loans

coabnau (n.d.) Retrieved from

https://coabnau.in/uploads/1609314535_Ag.Econ.3.2_ThirdSemester_AgriculturalFinanceandCo-
operation_TheoryNote_2020.pdf

wikepedia. (n.d.). Retrieved from https://en.wikipedia.org/wiki/IDBI_Bank

Onyiriuba, L., Okoro, E. O., & Ibe, G. I. (2020). Strategic government policies on agricultural
financing in African emerging markets. Agricultural Finance Review, 80(4), 563-588.

Hartarska, V., Nadolnyak, D., & Shen, X. (2015). Agricultural credit and economic growth in rural
areas. Agricultural finance review.

Raifu, I. A., & Aminu, A. (2019). Financial development and agricultural performance in Nigeria:
what role do institutions play?. Agricultural Finance Review.

Ngong, C. A., Onyejiaku, C., Fonchamnyo, D. C., & Onwumere, J. U. J. (2022). Has bank credit
really impacted agricultural productivity in the Central African Economic and Monetary
Community?. Asian Journal of Economics and Banking.

Bharti, N. (2018). Evolution of agriculture finance in India: a historical perspective. Agricultural

Finance Review.

Ogouvide, T. F., Adegbola, Y. P., Zossou, R. C., Zannou, A., & Biaou, G. (2020). Farmers'
preferences and willingness to pay for microcredit in Benin: results from in-the-field choice
experiments in Benin. Agricultural Finance Review, 80(5), 665-692.

Chandio, A. A., Jiang, Y., Rehman, A., Twumasi, M. A., Pathan, A. G., & Mohsin, M. (2020).
Determinants of demand for credit by smallholder farmers': a farm level analysis based on survey in
Sindh, Pakistan. Journal of Asian Business and Economic Studies.

Anh, N. T., Gan, C., & Anh, D. L. T. (2020). Does credit boost agricultural performance? Evidence
from Vietnam. International Journal of Social Economics.

Dey, S., Singh, P. K., & Mhaskar, M. D. (2022). Determinants of institutional agricultural credit

Page | 59
access and its linkage with farmer satisfaction in India: a moderated-mediation analysis. Agricultural
Finance Review, (ahead-of-print).

Pandey, B., Bandyopadhyay, P., & Guiette, A. (2019). Impact of different sources of credit in creating
extreme farmer distress in India. Benchmarking: An International Journal, 26(6), 1676-1691.

Yadav, I. S., & Rao, M. S. (2022). Agricultural credit and productivity of crops in India: field evidence
from small and marginal farmers across social groups. Journal of Agribusiness in Developing and
Emerging Economies, (ahead-of-print).

Mohapatra, S., & Sahoo, B. K. (2016). Determinants of participation in self-help-groups (SHG) and
its impact on women empowerment. Indian Growth and Development Review.

Akoijam, S. L. (2013). Rural credit: a source of sustainable livelihood of rural India. International
journal of social economics.

Manogna, R. L., & Mishra, A. K. (2022). Determinants of indebtedness and institutional credit to rural
agricultural households: an empirical evidence from South India. International Journal of Social
Economics, (ahead-of-print).

Kumar, A., Das, R., Aditya, K. S., Bathla, S., & Jha, G. K. (2020). Examining institutional credit
access among agricultural households in Eastern India: Trends, patterns and
determinants. Agricultural Finance Review.

Yadav, I. S., & Rao, M. S. (2022). Disparity of agricultural credit in India: field data evidence from
farmers across social groups. International Journal of Social Economics, (ahead-of-print).

Satish, P. (2006). Institutional credit, indebtedness and suicides in Punjab. Economic and Political
Weekly, 2754-2761.

Page | 60
CHAPTER 11:

ANNEXURE

Page | 61
 SUMMER INTERNSHIP PROGRAMME

IDBI BANK

QUESTIONNAIRE

Dear Respondent

I am a student of the MBA program (2021-2023) of Tezpur University & as a part of my

internship program, I am conducting a survey to find data regarding my project titled “A study
on Agri loan products of IDBI Bank in Tezpur.”

I request you to kindly extend your co-operation in filling this questionnaire. All information
provided by you will be kept confidential & used for academic purpose only.

Thank You,
Subham Sonar,
MBA 3rd Semester, Tezpur University

1. Do you have Agri loan account with IDBI Bank?

o Yes
o No

2. Education Qualification of the respondents?

o 10th pass
o 12th pass
o Graduation
o Post-Graduation
o None

Page | 62
3. What type of Agri loan product do you opt for?

o Micro loan
o Agri Gold loan
o KCC
o Warehouse Receipt Finance
o Farm Mechanization loan
o Others

4. By what time period the loan is sanctioned?

o 7-14 days
o 15-30 days
o 31-60 days
o More than 60 days

5. Terms & Conditions of loan offered by Bank?

o Highly satisfied
o Satisfied
o Neutral
o Dissatisfied
o Highly dissatisfied

6. How do you find the services provided to you?

o Very good
o Good
o Moderate
o Bad
o Very Bad

Page | 63
7. Documentation & procedure facility for availing loan?

o Highly Satisfied
o Satisfied
o Neutral
o Dissatisfied
o Highly Dissatisfied.

8. Low interest rate on loan plays an important role?

o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

9. Quick sanctioning and disbursement of funds is an important factor?

o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

10. Gold security is an important factor while availing gold loans?

o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

Page | 64
11. Processing fee plays an important role while availing Agri Gold Loans?

o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

12. Margin Rate affects the availing of Agri Gold Loan by the customer?

o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

13. Quick Sanctioning & disbursement procedure affects the availing of Agri Gold Loan by the
customer?

o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

14. By what time period the Agri Gold loan are sanctioned?
o Less than 15days
o 15-30 days
o Less than 60 days
o Less than 365 days

Page | 65
Page | 66