Institutional loan access among tenant farmers in Rajasthan and Haryana

Abstract

Access to institutional credit is crucial for sustainable agricultural development, especially for tenant farmers in India who are landless. Study examined the socio-economic profile, credit access, and usage patterns of tenant farmers in Haryana and Rajasthan by analysing the challenges they face in availing institutional loans. Using a random sampling approach, data from 320 contractual farmers were collected and analysed. Findings reveal significant dependency on both institutional and non-institutional loans. Key factors influencing loan access include socio-economic variables like education, caste, income, and landholding patterns. Productive loan utilization primarily supported agricultural investment, while unproductive use often used for fulfilment of social obligations, negatively impacting repayment capacity. The study highlighted the need for targeted policies to enhance financial inclusion for tenant farmers by improving access to institutional loan, strengthening land tenure systems, and promoting financial literacy.