Influence of Long Term Credit of Cooperative Agriculture and Rural Development Bank on the income of the Borrowers

Abstract

The recent research was conducted to examine the economic effect (in term of net income) of long term credit from District Cooperative Agriculture and Rural Development Bank” (DCARDB), at Hoshangabad from 2005-06 to 2009-10 Two hundred forty respondents were selected in which each thirty were the beneficiaries of new well, electric & diesel pump, tube well, submersible pump, sprinkler, thresher, pipe line and tractor (these eight purposes were selected purposively and period of loan was different for every purpose and for every borrowers), all these beneficiaries were selected from circle of 20 kilometres radius from each branch (Itarsi, Bankhedi, Piparia, Sohagpur, Babai, Banapura) of DCARDB (Hoshangabad). Paired t-test was used to compare the net income of the beneficiaries before and after utilization of long term credit. Study reveals that the “t” value for purchasing of electric & diesel pump and digging of tube well was 2.648 and 2.835, which were Significant, respectively. For the purpose of submersible pump the t-calculated value was 0.857, which was not significant and it also implies that there is no significant difference between net income before and after taking loan of cooperative farmers. It is also reveals that for the purpose of sprinkler and pipe line, the t- calculated value were 3.091 and 3.500 the differences were Significant, respectively. Paired t test showed that the t calculated value for thresher was 1.683, was nonsignificant and t calculated for tractor purchasing was 2.220 which was significant.