Choice of credit sources of small and marginal farmers in western Tamil Nadu

Small and marginal farmers lack access to credit from institutional sources. The study focused on the choice of credit sources of small and marginal tribal and non-tribal farmers in western Tamil Nadu. Primary data were collected through a stratified random sampling design. Multinomial logit models were used to measure the factors influencing the choice of credit. Private borrowing was higher (74%) in tribal non-SHG members and 64% in non-tribal non-members. Results indicate that education is positively related to access to BL-SHG microfinance and BL-SHG microfinance with co-operative banks. Agricultural training too has a positive and significant relationship with the adoption of BL-SHGs.