Full formBanking & Finance
LDBstands forLand Development Bank
Full Form of LDB
What is LDB?
The Land Development Bank (LDB) is a specialized financial institution in India that provides long-term credit to farmers and rural entrepreneurs for land development, irrigation, machinery purchase, and allied agricultural activities. Established under the cooperative framework, LDBs operate at state and primary levels (State LDBs and Primary LDBs). They play a vital role in rural development by financing capital-intensive projects such as land reclamation, farm mechanization, and horticulture. These banks mobilize deposits and borrow from NABARD to extend loans repayable over 5-15 years. LDBs are particularly prominent in states like Maharashtra, Karnataka, and Tamil Nadu. They are often examined in banking and agriculture competitive exams (IBPS, RBI, NABARD) for their role in institutional credit to agriculture. The LDB system was established post-independence to supplement the short-term credit from Primary Agricultural Credit Societies (PACS). Despite challenges like non-performing assets, LDBs remain crucial for rural infrastructure financing.
LDB का फुल फॉर्म
भूमि विकास बैंक
Example
The farmer approached the local LDB for a long-term loan to install a drip irrigation system on his five-acre plot.
LDB — frequently asked questions
What is the full form of LDB?
The full form of LDB is Land Development Bank.
What is the role of Land Development Bank in India?
LDBs provide long-term credit to farmers for land improvement, irrigation, and farm machinery, supporting rural infrastructure and agricultural growth.
How is LDB different from other cooperative banks?
Unlike PACS which give short-term loans, LDBs specialize in long-term loans for capital-intensive agricultural projects, operating at state and primary levels.