Is Access to Loan Adequate for Financing Capital Expenditure? A Household-level Analysis on Some Selected States of India

Meenakshi Rajeev ()

Working Papers from eSocialSciences

Abstract: This paper attempts to identify the factors that determine access to credit for financing capital expenditures across selected developed, less developed and middle performing states in India. Using a double hurdle model, it shows that access to credit is generally governed by supply side constraints and that household demand is interest rate inelastic. It further shows that educational status of the household plays an important role in gaining access to credit and therefore, improving education could be considered as one of the policy prescriptions by which access to credit can be improved.

Keywords: Access to credit; Interest Rate; Borrowing; India; capital; finance; improved education; financing capital expenditure; household demand (search for similar items in EconPapers)
Date: 2015-12
Note: Institutional Papers
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Related works:
Working Paper: Is access to loan adequate for financing capital expenditure?: A household level analysis on some selected states of India (2014)
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