Borrowing and repayment hardships: evidences from farmers in Haryana

Babloo Jakhar, Rohtas Kait and Vijay Kumar

Economic and Regional Studies (Studia Ekonomiczne i Regionalne), 2022, vol. 15, issue 4

Abstract: Subject and purpose of work: The paper focuses on the problems faced by farmers in obtaining and repaying loans from institutional and non-institutional sources. Materials and methods: The study was conducted in Haryana state, India. It was based on a field survey involving 600 farmers. Proportionate sampling technique was employed and pre- tested schedules were filled during vis-a-vis interviews. Results: The findings of the study highlight main problems faced by farmers in acquiring and repaying loans. They include: no loan without security, ambiguous terms and conditions, the time-consuming procedure of granting loans, not farmer friendly bank officials, and the request for bribes. In the case of non-institutional sources, main problems include: lack of security, deterioration of social status, and hesitation in mortgaging agricultural land. Furthermore, low price of agricultural produce, crop failure, and the high-interest rates charged by non-institutional sources were major constraints in the timely repayment of loan amounts. Conclusions: Several constraints existed in granting loans to farmers. Government should support and provide hassle free loans to farmers.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ags:plecrs:339243

DOI: 10.22004/ag.econ.339243

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