Agricultural Sector: Income Generation due to Intake of Bank Loans in the Hooghly District

In this paper we would like to investigate whether income were generated in the agricultural sector due to taking of bank loans in the district of Hooghly in West Bengal. We have collected the primary data from 364 sample borrowers to derive empirical evidence. Our finding shows that the income generation is influenced by the education, proportion of investment financed by loans, worker population ratio, irrigated land, technology, crop failure and nature of loan use. The effect of different determinants on the growth rate of income is highest for the large farms and lowest for the small and marginal farms.