RECOMMENDATIONS

Based on the analysis, I recommend approving the loan of ₹ 45999.00 with some conditions. The farmer has a consistent yield per hectare and average selling price, which indicates a stable income stream. However, the yield per hectare has been decreasing over the years, which may impact future profits. I suggest including a clause in the loan agreement that requires the farmer to implement measures to improve crop yields.

ANALYSIS

The farmer has applied for a loan of ₹ 45999.00, expecting an estimated profit of ₹ 2300.00.

Crop Yields:

The yield per hectare has been decreasing over the years, from 11 (2020) to 10 (2021) and 9 (2022). This trend is a concern, as it may impact future profits. The average yield per hectare is 10, which is relatively stable.

Loss Data:

There is no loss data provided, which is a positive aspect. However, considering the decreasing yield per hectare, it's essential to assess the risk of potential losses in the future.

Crop Insurance:

There is no information provided about crop insurance. I recommend including crop insurance as a requirement for loan approval to mitigate potential losses due to natural disasters or other unforeseen circumstances.

Profitability:

The estimated profit of ₹ 2300.00 seems reasonable, considering the stable average selling price and yield per hectare. However, the decreasing yield per hectare trend may impact future profits.

Overall Assessment:

While there are some concerns regarding the decreasing yield per hectare, the farmer's stable income stream and reasonable estimated profit make the loan application viable. With the inclusion of measures to improve crop yields and crop insurance, I recommend approving the loan.