Explain sources of agricultural finance in Nepal on 5 marks
Answers
Answer:
The two major sources of finance in agriculture are institutional and non- institutional sources. Institutional sources consist of the government and co-operative societies, commercial bank including the Regional bank, Lead bank.
Answer:
Different sources are available in the agricultural credit market in Nepal. Formal sources include agricultural development bank, farmers' cooperatives, and other financial institutions while informal sources include borrowing from farmers group, women group, and money lender individual (mostly relatives).
The main sources of non-institutional agricultural finance are moneylenders, landlords, traders and private borrowings. Moneylenders and landlords: From the very beginning, moneylenders are the main suppliers of short-term and long-terms credits to Nepalese farmers.