A OVERVIEW OF AGRICULTURAL FINANCE IN INDIA

COMMERECE

Agricultural finance plays a crucial role in enhancing agricultural productivity and supporting the livelihoods of millions in India. This study provides a comprehensive overview of agricultural finance, focusing on its sources, distribution, and challenges within the Indian context. The research delves into institutional frameworks such as cooperative banks, regional rural banks (RRBs), and commercial banks, which play pivotal roles in channeling credit to farmers. It also highlights the significance of government policies, including farm credit packages and subsidies, in mitigating credit accessibility issues. The study underscores the persistent challenges such as high dependency on informal credit sources, inadequate financial literacy, and issues in repayment cycles due to crop failures and climate uncertainties. Additionally, it explores the impact of technological advancements like digital banking and fintech solutions in revolutionizing agricultural credit systems. Data-driven insights suggest that a robust and inclusive financial system is essential for addressing the disparities in credit distribution and fostering sustainable agricultural growth.This research concludes that while significant progress has been made in improving credit flows to agriculture, a multi-faceted approach involving policy intervention, financial inclusivity, and technological integration is necessary to overcome existing challenges. The findings aim to guide stakeholders in crafting effective strategies for a resilient agricultural economy.

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