Translate 
Abstract
Abstract Subject and purpose of work The study examined the loan repayment behavior of beneficiary farmers in Primary Agricultural Cooperative Societies in the State of Haryana, India. Material and methods The findings were based on primary as well as secondary data. The secondary data was collected for the period of 2006-2007 to 2018-2019. The primary data was collected in the second quarter of 2022. Results The study concluded that year-wise the maximum percentage of defaulter farmers was 34.97% in 2008-2009 due to the debt relief scheme announced by the Government of India in 2008. Furthermore, it revealed that about 75% of beneficiary farmers repaid their loans regularly after receiving the benefit of interest subvention at 7% by the government of India and the state government. The findings on primary data concluded that most farmers have been repaying their loans regularly, and less than 10% of beneficiary farmers defaulted. The main reason for the default was a loan without security and the anticipation of a loan waive-off scheme. About 19% of beneficiary farmers have been repaying their loans irregularly due to the short time within which loan repayments needed to be made. Conclusions The short time of loan repayment is the main cause of irregular loan repayment behavior. The period of repayment of loans should be extended for one year and it should be considered from the loan issuance date.
Highlights
Cooperative credit institutions have long been playing a significant role in rural India
The study concludes that year-wise the maximum percentage of defaulter farmers was found to be 34.97% in the year 2008-2009 due to the debt relief scheme announced by the Government of India in 2008
The maximum repayment was recorded as 76.79% in 2015-16, because on September 1, 2014, the state government started to provide 4% interest subvention to the farmers whose payments were prompt
Summary
Cooperative credit institutions have long been playing a significant role in rural India. The beginning of the cooperative movement started in 1904 with the passing of the Cooperative Credit Society Act, 1904. The purpose for establishment of cooperative credit society was to release the borrowing farmers from the clutches of local moneylenders, who charged the borrowing farmers exorbitant rates of interest. The cooperative credit institutions function under the aegis of the State Cooperative Credit Society Act. The present structure consists of short-term credit and long-term credit. The short-term cooperative credit institutions function within a threetier federal structure, i.e., state cooperative banks function at the state level, district central cooperative banks at the district level, and primary agricultural cooperative societies at the village level. PACS are the smallest institutions that function at the village level of the short-term cooperative credit structure in India (Satyasai, Badatya, 2000)
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
