Credit: 3(2+1)


Agricultural Finance- meaning, scope and significance, credit needs and its role in Indian agriculture. Agricultural credit: meaning, definition, need, classification. Credit analysis: 4 R’s, and 3C’s of credits. Sources of agricultural finance: institutional and non-institutional sources, commercial banks, social control and nationalization of commercial banks, Micro financing including KCC. Lead bank scheme, RRBs, Scale of finance and unit cost. An introduction to higher financing institutions – RBI, NABARD, ADB, IMF, world bank, Deposit Insurance and Credit Guarantee Corporation of India. Cost of credit. Recent development in agricultural credit. Preparation and analysis of financial statements – Balance Sheet and Income Statement. Basic guidelines for preparation of project reports- Bank norms – SWOT analysis.

Agricultural Cooperation – Meaning, brief history of cooperative development in India, objectives, principles of cooperation, significance of cooperatives in Indian agriculture. Agricultural Cooperation in India- credit, marketing, consumer and multi-purpose cooperatives, farmers’ service cooperative societies, processing cooperatives, farming cooperatives, cooperative warehousing; role of ICA, NCUI, NCDC, NAFED.


Determination of most profitable level of capital use. Optimum allocation of limited amount of capital among different enterprise.

Analysis of progress and performance of cooperatives using published data. Analysis of progress and performance of commercial banks and RRBs using published data.

Visit to a commercial bank, cooperative bank and cooperative society to acquire firsthand knowledge of their management, schemes and procedures.

Estimation of credit requirement of farm business – A case study.

Preparation and analysis of balance sheet – A case study.

Preparation and analysis of income statement – A case study.

Appraisal of a loan proposal – A case study.

Techno-economic parameters for preparation of projects. Preparation of Bankable projects for various agricultural products and its value added products.

Seminar on selected topics.

Practicals (Experiments):

1) Working out the various repayment plans

2) Study of commercial banks/ RRB

3) Study of NABARD

4) Study of PACS/ DCCB

5) Study of SHGs

6) Estimation of scale of finance

7) Estimation of indemnity

8) Estimation of credit limits under Kisan Credit Card

9) Study of FSS

10) Study of Dairy co-operatives/ any other co-operative institution

11) Appraisal of loan proposal-A case study

12) Techno-Economic parameters for preparation of projects

13) Preparation of bankable projects for various agricultural products and its value added products

14) Seminar on selected topics

15) Final Practical Examination