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The demand & supply side of agricultural finance has some setbacks such as the small and marginal farmers who cannot provide collateral securities for availing loans of higher amounts and so, they tend to secure the loans from non-institutional credit sources (like money lenders). The loan seekers do feel it trouble some to go through the application process imposed on them by the institutional sources like the banks offering the loans. There are also problems like the institutional sources offer loans to landlords alone but do not offer loans to farmers who do not own land, i.e., who work on leased lands.

These small amounts of loans availed loans are not sufficient for them to go for modern methods of cultivation and thus the productivity also doesn't get better........

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Q: What are the constraints on both the demand and supply side to agricultural finance?
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