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Another name for credit is loan. In my degree program mainly discuss about the agricultural credit facilities under the Finance subject. Initially agricultural loan facilitated by private money lenders but expensiveness, higher exploitation and inadequacy with that loan. So integrated institutional program starts by combining cooperatives, regional rural bank and commercial bank to facilitate credit for farmers timely, adequately and at lower cost. 

![image.png](https://cdn.steemitimages.com/DQmabqaR96wCP7dEdXqcpQSWyoYosFEKU8txXwsrME18oUB/image.png)
[source](https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.assignmentpoint.com%2Fbusiness%2Ffinance%2Fevaluation-of-agriculture-credit-programs-under-credit-policy.html&psig=AOvVaw2H97qVVKTV6uunEgnyTYfB&ust=1634231157164000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCPiez9jvx_MCFQAAAAAdAAAAABAD)



This credit mainly uses for purchasing input which require for rise the agricultural land. They buy seeds, fertilizer, machinery, equipment and pesticides by using these loans. Other than that credit enhances the stand of living farmers and their family members and it important to purchase new land and increase the production of existing lands. Increase the productivity of farm resources is another purpose of this loan. 


Agricultural loan classing using different criteria. They are 
1. Time period use to repay the loan.
2. Purpose of the loan.
3. Security of the loan.
4. Lender classification.
5. Borrower classification.
6. Classify based on approach.
7. Classify based on the contact, etc. 



![image.png](https://cdn.steemitimages.com/DQmYT7LRHJEP531LkoowfvKeTt44K32zD1hLGgBFCcKNKBm/image.png)
[source](https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.dawn.com%2Fnews%2F1155268&psig=AOvVaw2H97qVVKTV6uunEgnyTYfB&ust=1634231157164000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCPiez9jvx_MCFQAAAAAdAAAAABAO)


Loan classing based on the time period use to repay the loan, divide the loan in three segments. They are small term, medium term and long-term loan. Based on the purpose loan classify as production loan, marketing loan, investment loan and consumption loan. Based on the lender it classifies as institutional loan and non-institutional loan. Based on the borrower it classifies according to land size, according to location of the farm land and according to type of the farming done.





Classify based on the approach mainly divide loan in to loan for personal, loan for individual belongs to special area, loan for low interest rate. Loan can classify according to contact, direct contact and indirect contact.
I tell you about the loan classify based on the repayment period use to repay the loan. Short term loan must be repaid with in six months to eighteen months. This loan also called crop loan mainly advanced for day-to-day farm activity, purchase of fertilizer, purchase of seeds, plant protection chemicals and wage payment for labors.
Medium term loan extends 18 months to 5 years. Mainly use to purchase of equipment. Loan term loan repay within 5 to 20 years or even more than 20 years.
Loan term loan mainly use to permanent improvement of the land, purchase of tractors, implementing orchards and purchase of machinery.
This way different criteria use to classify the loans in to different segments.

![image.png](https://cdn.steemitimages.com/DQmdjuzPEUDb5durH6438Qg1JFgoRw74nz4sqx8Q5na9EeE/image.png)

[source](https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.bankingfinance.in%2Fways-of-boosting-agricultural-credit-in-banks.html&psig=AOvVaw2H97qVVKTV6uunEgnyTYfB&ust=1634231157164000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCPiez9jvx_MCFQAAAAAdAAAAABAU)


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