An Empirical Analysis of Agricultural Credit Utilization and Repayment Behaviour among Farmers

Abstract

               Agricultural credit is a key element to enhance agricultural productivity, agricultural income and agricultural development. Timely and adequate credit helps farmers to buy seeds, fertilizers, machines, irrigation and modern farming technology. But, there are a number of economic, social and institutional variables that affect the availability and use of agricultural credit by farmers. The present study was set out to analyze the various factors influencing the agricultural credit and also to find out the level of awareness of respondents about agricultural credit. Primary data were gathered from 200 respondents by structured questionnaire using convenient sampling technique. The analysis and interpretation were conducted using the statistical tools, including Mean, Standard Deviation, Friedman test and ANOVA. The analysis shows that availability of institutional finance, interest rate of loan, income level of farmer and type of crops are the most important factors that affect the agricultural credit. The study also reveals that there is no significant difference in agriculture income and level of awareness amongst the respondents. The research underscores the need to make agricultural credit more accessible, increase government support and raise awareness about agricultural credit schemes. The study offers some helpful lessons for policy makers, financial institutions and agricultural development authorities regarding more effective rural credit systems and sustainable agricultural development.