Does the LPU fulfill requirement of bank to provide loan?

Yes, the Land Purchase Undertaking (LPU) fulfills the requirement of the bank to provide a loan. An LPU is a legally binding document signed by the borrower, typically a farmer, wherein they agree to use the loan amount specifically for the purchase of agricultural land. By providing an LPU, the borrower assures the bank that the loan proceeds will be utilized for the intended purpose, giving the bank the necessary confidence to approve and disburse the loan. The LPU ensures transparency, mitigates the risk of misuse of funds, and facilitates efficient monitoring of loan utilization.