Impact of factors on the utilization of agricultural credit of banks: an analysis from the borrowers’ perspective

Lokesha Lokesha,Iqbal Thonse Hawaldar

doi:10.21511/bbs.14(1).2019.16

Lokesha Lokesha, Iqbal Thonse Hawaldar

Open Access

https://doi.org/10.21511/bbs.14(1).2019.16

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Abstract

Agricultural credit is required for the development of agriculture scenario in any economy. Commercial, cooperative and regional rural banks have extended agricultural credit to the farmers in Dakshina Kannada district of India. The effectiveness of agricultural credit system depends on the utilization of credit funds by the borrowers. The present study made an attempt to understand the factors influencing the utilization of agricultural credit of banks in Dakshina Kannada. The study used primary and secondary data. Primary data are gathered from the borrowers of banks operating in Dakshina Kannada district. The study found that there is an impact of demographic, agriculture and agricultural credit factors on the purpose of utilization of agricultural credit in Dakshina Kannada district.

Highlights

The adequate and timely availability of credit at reasonable rates is crucial for agricultural development
The banks in India consisting of public, private, cooperative and regional rural banks have made a remarkable progress in disbursement of agricultural credit
The success of agricultural credit system is determined by several factors and one of them is the purpose of utilization of borrowed funds

Summary

INTRODUCTION

The adequate and timely availability of credit at reasonable rates is crucial for agricultural development. The utilization of this agricultural credit fund determines the effectiveness of repayment In this regard, an attempt is made to analyze the factors influencing the purpose of utilization agricultural credit by borrowers in Dakshina Kannada district of Karnataka. There is dium-term loans and 17.95 percent of long-term a positive impact of education in the family of farm- credit, were misutilized by the respondents (Sapkal ers which affects the increased quantum of credit et al, 2010). This shows that there is very less perby farmers (Seena, 2015).

OBJECTIVE

ANALYSIS AND DISCUSSION

Hypothesis 3

Findings

CONCLUSION