Full Form of AGB

What is AGB?

The Agricultural Guarantee Fund (AGB) is a credit guarantee scheme established by the Government of India under the National Bank for Agriculture and Rural Development (NABARD). It aims to provide collateral-free loans to farmers and agricultural entrepreneurs, reducing the risk for lending institutions and improving access to formal credit in rural areas. The fund primarily supports small and marginal farmers who cannot offer traditional collateral, thereby promoting inclusive growth in agriculture. AGB is widely used by commercial banks, regional rural banks, and cooperative banks across India to back loans for crop production, farm mechanization, and allied activities. It operates under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) framework for larger enterprises, but focuses specifically on agriculture. The scheme is crucial for implementing government initiatives like the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) and other farm support programs. For competitive exams like those conducted by IBPS, RBI, and NABARD, understanding AGB is important as it appears in questions on rural banking and agricultural credit. The fund has significantly improved loan disbursement in rural India, reducing the dependence on informal moneylenders.

AGB का फुल फॉर्म

Example

Under the AGB scheme, the farmer was able to avail a ₹5 lakh loan for buying a tractor without any mortgage.

AGB — frequently asked questions

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