abhishreshthaa
Abhijeet S
The need for long-term loan is being satisfied by land development banks (formerly the were called land mortgage banks). The objective of such banks is to provide long-term credit to the cultivators against the mortgage of their lands. The loans from the land development banks are quite cheap and are spread over a long period of 15 to 20 years.
It is, therefore, convenient ot borrow from these banks if previous debts have to be cancelled or if additional land is to be purchased or if improvements have to be made. Though land development banks have been making considerable progress in recent years in this country, they have not really contributed much to the financial need of the farmers.
Most farmer are not even aware about this bank & 70% of the land development banks are located in the three South Indian States of Tamil Nadu, Andhra Pradesh & Karnataka. The loan sanction by this bank has been increase annually from Rs. 3 crores to Rs. 770 crores between 1950-51 and 1989-90.
major drawback of this bank is they lend against the security of land, and big landlords have taken advantage of them and, by and large, small peasants have not benefited from them.
It is, therefore, convenient ot borrow from these banks if previous debts have to be cancelled or if additional land is to be purchased or if improvements have to be made. Though land development banks have been making considerable progress in recent years in this country, they have not really contributed much to the financial need of the farmers.
Most farmer are not even aware about this bank & 70% of the land development banks are located in the three South Indian States of Tamil Nadu, Andhra Pradesh & Karnataka. The loan sanction by this bank has been increase annually from Rs. 3 crores to Rs. 770 crores between 1950-51 and 1989-90.
major drawback of this bank is they lend against the security of land, and big landlords have taken advantage of them and, by and large, small peasants have not benefited from them.