Agricultural Finance refers to facilities granted for the following purposes:
Non-farm credit includes financing for livestock such as dairy, poultry and fisheries, etc.
Agriculture Financing shall not include loans to traders and intermediaries engaged in trading/processing of agriculture commodities. Such lending would be covered under Prudential Guidelines for Corporate/ Commercial Banking or SME Financing.
However, agricultural financing can be extended to entities (including corporate farms, partnerships and individuals) engaged in farming activity, as well as processing, packaging and marketing of mainly their own agricultural produce, provided 75% of the agriculture produce being processed, packaged and marketed is produced by the above-mentioned entities themselves.