A sociological study on institutional loan among farmers

Pages: 99-101
Ruchi and Subhash Chander (Department of Sociology, CCSHAU, Hisar, Haryana)

Agricultural farmers in Hisar and Kaithal district are facing many challenges in accessing financial services as they have limited access to financial markets. Despite the numerous reforms undertaken by the Government including financial sector reforms, many rural farmers have remained in poverty with limited capacity to access safety nets like loans to fight against hunger and disease. This paper is aiming to find out nature and types of loan that affect farmer’s decision to access agricultural finance. A survey was conducted in Hisar and Kaithal district on 160 debted respondents. Employing random sampling techniques, a pre-tested questionnaire was administered. The data was collected through interviews as most of them are reluctant to fill the form. Results indicated that nearly three-fifth of the respondents (58.75%) took the crop loan from institution sources and term loan (41.25%) respectively. Even 25.00% of the respondents took both types of loan (term & crop loans). Two-third of the respondents (67.50%) took the loan for crop expenses. On the other hand, 34.38% and 11.25% availed the loan for purchasing of machinery and equipment and for livestock, respectively.