Non-institutional Sources of Agricultural Credit and Institutional Sources of Agricultural Credit.

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answered Dec 25, 2021 by RidhiKumari (34.1k points)
selected Dec 27, 2021 by Shilpajadhav

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Non-institutional Sources of Agricultural Credit	Institutional Sources of Agricultural Credit
(i) It includes money lenders, traders, landlords, commission agents, friends, and relatives, etc.	(i) It includes commercial banks, Regional Rural Banks (RRBs), Rural Cooperative Credit Institutions, etc.
(ii) It is easy to obtain loans from non-institutional sources. The procedure is very simple and less time-consuming.	(ii) There are many formalities to obtain loans from institutional sources. The procedure is complicated and time-consuming.
(iii) In this case, a very high (exorbitant) rate of interest is charged.	(iii) In this case, the rate of interest is low.
(iv) There is no restriction on the use of loans taken from noninstitutional sources.	(iv) The loan provided by institutional sources is restricted to use for productive activities only.