Principles of Credit in Agricultural Financing

Explore the key principles guiding credit in agricultural financing as outlined by Dr. J.P. Singh, including the Five Cs of Credit and the Seven Ps of Credit. Learn about the importance of factors such as productive purpose, productivity, and proper utilization in ensuring successful lending practices. Discover how the borrower's character, capacity, and capital play crucial roles in credit evaluation, alongside the significance of phased disbursement and payment protection.

• Agriculture
• Credit Principles
• Financial Management
• Borrower Trustworthiness
• Productive Purpose

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1. LECTURE PREPARED BY - Dr. J P Singh Associate Professor (SGRRU, Dehradun ) DEPARTMENT of AGRICULTURE SHRI GURU RAMRAI UNIVERSITY, DEHRADUN UTTARAKHAND

2. Outline Five C s of Credit Seven P s of credit Principle of productive purpose Principle of productivity Principle of personality Principle of phased disbursement Principle of proper utilization Principle of payment and protection

3. 5 Cs of Credit Character Capacity Capital Condition commonsense

4. 7 Ps of Credit Principal of productive purpose Principal of personality Principal of productivity Principal of phased disbursement Principal of proper utilization Principal of payment Principal of protection

5. Principal of productive purpose It refers that the loan amount given to the farmer- borrower should be capable of generating additional income.

6. Principal of Personality It deals with trustworthiness of the borrower. Safety element of the loan is not totally depends up on the security offered but also on the personality.

7. Thank you Prepared By - Dr. J P SINGH ASSOCIATE PROFESSOR DEPARTMENT OF AGRICULTURE AND AGRONOMY