The impact of socio-economic factors on credit access of farmers in Nagpur district

Abstract

The study investigates the socio-economic characteristics and borrowing patterns of farmers in Nagpur district, India, focusing on the role of credit in agricultural development. A multi-stage random sampling method was employed to collect data from 80 farmers in two tehsils, categorizing them as beneficiaries and non-beneficiaries of credit. The study found that middle-aged, minimally educated farmers with small family sizes were more likely to access credit. Institutional sources were the primary choice for borrowing due to reasonable interest rates and easy accessibility. However, farmers also relied on non-institutional sources to meet emergency needs. The research highlights the importance of credit in enabling small and medium farmers to acquire necessary inputs, increase productivity, and finance value-adding activities. The findings suggest that improving access to affordable credit is crucial for enhancing agricultural productivity, reducing poverty, and promoting equitable growth in rural areas. The study emphasizes the need for policies and interventions that facilitate the timely availability of credit to small-scale producers, enabling them to establish sustainable and profitable farming systems. Further research is needed to explore the impact of credit on agricultural output and the specific challenges faced by farmers in accessing financial services.