CLASSIFICATION OF AGRICULTURAL CREDIT



CLASSIFICATION OF CREDIT

These are three classes of credit. These three classification of credit are based on the following:
(1)

Classification based on length of period (i.e. time period) of the loan;

under this classification, there exist three classes of loan or credit. These are:
(i) Short term credit: This is a productive credit which the borrower is expected to refund in a year or less. It may be used to purchase livestock feed, fertilizers, seeds, fuel or to pay for hired labour.
(ii) Medium term credit: This credit is to be repaid within a period of two to five years. It may be used to purchase machinery, breeding livestock or housing for livestock.
(iii) Long term credit: This credit is repayable within a period of three to 20 years. It can be sued to purchase costly fixed assets such as land, construction of farm buildings, dams and irrigation projects.






(2)

Classification based on sources of credit

under this classification, two classes emerge. These are:
(i) Institutional credit: These are credits granted to farmers to institutions like commercial banks, cooperative societies, insurance companies, agricultural banks, government agencies and international Development Agencies (IDAs).
(ii) Non-institutional credit: these are credits grant to farmers that are not related to institutions. Examples of non-institutional credits are personal savings, friends, money lenders, family sources and thrift and saving societies.

(3)

Classification based on liquidity

under this classification, two classes emerged. These are:
(i) Loan-in-cash: This is the type of credit or loan given to farmers in form physical cash to set up or expand their farming activities. Such cash given is used by the farmers to purchase farm inputs like seed, fertilizers, implements and agro-chemicals used in farming, such loans are usually paid back to the bank with interest.
(ii) Loan-in-kind: This is the type of loan or credit given to the farmer in kind or in material form. Farmers do not have access to physical cash. Rather, they are given the farmers inputs such as seeds, fertilizers, agro-chemical, tools and implement in physical form to help them improve their farming activities.






HERE YOU WILL FIND EVERY AVAILABLE TOPICS ABOUT AGRICULTURAL SCIENCE AND BIOLOGY. AND THE LINKS TO THEIR VARIOUS SOURCES.
1. DEVELOPMENT OF AGRICULTURE
2. IMPORTANCE OF AGRICULTURE
3. SUBSISTENCE AGRICULTURE
4. COMMERCIAL AGRICULTURE
5. PROBLEM OF AGRICULTURAL DEVELOPMENT
6. SOLUTIONS TO POOR AGRICULTURAL DEVELOPMENT
7. AGRICULTURAL LAWS AND REFORMS
8. ROLES OF GOVERNMENT IN AGRICULTURAL DEVELOPMENT
9. AGRICULTURAL POLICIES
10. PROGRAM PLANNING IN AGRICULTURE
34.
FORESTRY
35. WILDLIFE CONSERVATION
37. TOPOGRAPHY
38. SOIL
39. BIOLOGICAL FACTORS




42. CLIMATIC FACTORS AFFECTING AGRICULTURAL PRODUCTION
43. TEMPERATURE
44. RAINFALL
45. WIND
46. SUNLIGHT
47. SOLAR RADIATION
48. BIOTIC FACTOR AND AGRICULTURAL PRODUCTION
49. PESTS
50. BIRDS
51. DISEASES

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