There is quite a wide gap between the crop sowing and realisation of income after production hence, the farmers have to borrow money from various sources to meet their initial investments on seeds, fertilisers, implements and other family expenses (like marriage – *****, religious ceremonies, etc.,).
At the time of independence, farmers were exploited by local money lenders and traders. To save the farmers from the exploitation of money lenders and traders, the Government adopted the concept of social banking and multi-agency approach during the year 1969.
In a to this attempt, it established National Bank for Agriculture and Rural Development (NABARD) in 1982 as an apex body to co-ordinate the activities of all institutions involved in the rural financing system.
