Department of Agricultural Economics, Mahatma Phule Krishi Vidyapeeth, Rahuri-413722, Maharashtra
Online published on 5 December, 2018.
The role of credit in agricultural development is well documented. Many farmers in the developing countries are still dependent on non-established sources for their financing needs. The present exercise was carried out to study the pattern of loan acquisition from non-institutional agencies and overdues of such loans in Maharashtra. In all, one hundred sixty sample cultivators were studied (from four districts scattered in sixteen villages). The sample farmers were chosen among non-institutional sources who borrowed loans during the year 2008–09 to 2010–11. The findings reveal institutional agencies are not able to satisfy consumption and social needs of farmers and so they require non-institutional loan by money lenders, traders, friends, relatives, etc. with high interest. Maximum loan is acquired from the money lenders. There was prevalence of loan overdues among borrowers which depicted a negative relationship with the farm size.
