It is a quasi-commercial type that provides services such as accepting deposits, making business loans, and offering basic investment products.
However, real progress began when the land development bank was established in Chennai in 1929.
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 typically repayable within a 20 to 30-year period.
The rates of interest for LT loans are generally low and within the paying capacity of farmers.