Question

When Credit becomes productive

Answer 1

Answer:

Finance used to purchase seeds, fertilizers, pesticides and related agricultural tools and credit taken for the purpose of permanently enhancing the productivity of land are known as productive credit.

In order to fulfill the financial requirements of the agricultural sector in rural India, appropriate and specialized credit agencies are needed. Credit helped to increase the productive capacity.Agricultural credit can be categorized on the basis of both purpose of credit and objective of credit provider.

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