Repayment Performance of Institutional Agricultural Credit in Jaipur District of Rajasthan

Abstract

The present study was conducted in Jaipur district of Rajasthan. A sample of 221 farmer borrowers was selected by using the random sampling technique. The results of repayment performance of credit indicated that only 81.27% of short-term credit, 84.34% of medium-term credit and 77.82% of long-term bank credit was repaid by due date and the remaining amount was overdue as on due date. The repayment performance of co-operative credit for rabi season was 92.62% and that for kharif season was 95.44%. It was higher as compared to banks. The results also indicated that out of 221 farmer borrowers, 124 (56.11%) were non-defaulters and 97 (43.89 per cent) were defaulters. The percentage defaulters among the farmer borrowers ranged from as high as 61.11% in the large farmer borrowers to as low as 36.36% in the marginal farmer borrowers. The regression results revealed that out of eleven explanatory variables only seven variables significantly affected the overdues of defaulters, however, their degrees and numbers varied from category to category. Out of these significant variables, four variables viz., amount borrowed, amount put to un-productive purposes, expenditures on family consumption and old debts were positively and the remaining three variables viz., gross farm income, non-farm income and cropping intensity negatively influenced the overdues.