Assessment of farmers' access to informal credits in Baraki Barak district of Logar province – Afghanistan

Abstract

Planting and harvesting crops requires capital and money at all times. Farmers can’t prepare all this money themselves, they are inevitably using formal and informal sources of credit to better advance agricultural affairs. The present study aimed to determine farmers' access to informal credits in Baraki Barak district of Logar province. This research is descriptive - cross-sectional in terms of data collection and applied in terms of purpose. For conducting the research, the primary data was used. The data were collected by survey using a questionnaire, as a simple random sample. Research findings show that the majority (more than 76%) of farmers use informal credits. Farmers receive the highest amount of credit from relatives and friends, local shopkeepers, non-agricultural institutions and local merchants, respectively. The earned credits are mostly used in agricultural affairs and use a small amount for non-agricultural purposes and livelihoods. The researchers recommend conducting research on the effects of informal credits on farmers' morale, sense and confidence, Investigate the effects of informal credits on crop yields and the use of informal credits by age groups, A study on how farmers can use informal credits effectively and get maximum benefit from them.