A land development bank ( bn, ভূমি উন্নয়ন ব্যাংক), abbreviated LDB, is a special kind of

bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

, and is of quasi-commercial type that provides services such as accepting deposits, making business loans, and offering basic investment products. The main objective of the LDB is to promote the development of land,

agriculture Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to ...

and increase the

agricultural production Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people t ...

. The LDB provides long-term finance to members directly through its branches.

History

The first Land Development Bank was started at Jhang in

Punjab Punjab (; Punjabi: پنجاب ; ਪੰਜਾਬ ; ; also romanised as ''Panjāb'' or ''Panj-Āb'') is a geopolitical, cultural, and historical region in South Asia, specifically in the northern part of the Indian subcontinent, comprisin ...

in 1920. Even though the first LDB was started in

, the real progress began when the land development bank was established in

Chennai Chennai (, ), formerly known as Madras (List of renamed Indian cities and states#Tamil Nadu, the official name until 1996), is the capital city of Tamil Nadu, the southernmost states and territories of India, Indian state. The largest city ...

in 1929. Not only that, land banks, land mortgage banks, agriculture banks, agriculture development banks are now called land development banks in modern world.

Type

There are different kinds of functions of land development banks in world. They also differ from one another in their bye-laws or constitutions. Some are organized on a

state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States * ''Our S ...

basis, some on a co-operative basis and some on a

private Private or privates may refer to: Music * "In Private", by Dusty Springfield from the 1990 album ''Reputation'' * Private (band), a Denmark-based band * "Private" (Ryōko Hirosue song), from the 1999 album ''Private'', written and also recorded ...

basis, incorporating joint stock principles.

Funds

The sources of funds of land development banks are: # Share capital # Deposits from members or non-members # Issue of debentures # Accepting deposits # Reimbursements of subsidies from the government # Other funds. #

Loans and advances

Land development bank provides long-term funds for various agriculture related projects besides development of land and business. The borrowing capacity of a member is generally determined according to the number of shares he holds in the bank. The loans granted by land development bank is repayable within 20 to 30 years. Normally, loans are granted up to 50% of the value of the land or up to 30 times the revenue. Loans are granted only after a thorough verification of security title-deeds as well as the necessity for the loan. The rates of interest for LT loans are generally low and within the paying capacity of farmers. They are around 11 to 12%.

Notable LDB

* Gujarat State Cooperative Agriculture and Rural Development Bank; see * Progoti Co-operative Land Development Bank Limited * National Co-operative Agriculture & Rural Development Banks Federation Limited * Orissa Provincial Co-operative Land Mortgage Bank Limited *

Delta Land Development Limited Delta commonly refers to: * Delta (letter) (Δ or δ), a letter of the Greek alphabet * River delta, at a river mouth * D (NATO phonetic alphabet: "Delta") * Delta Air Lines, US * Delta variant of SARS-CoV-2 that causes COVID-19 Delta may also re ...

Land and Agricultural Development Bank of South Africa Land and Development Bank of South Africa (LADBSA) is a government-owned development bank in the Republic of South Africa. The bank was established as a development finance institution in 1912 by the Government of South Africa. The main objectiv ...

* Kerala State Co Operative Agricultural and Rural Development Bank (KSCARDB)

References

{{land use Banks of India Banking in India Legal entities