Determinants of income generation due to intake of bank loans: A case study of hooghly district

Income generation is the basic and primary objective of intake of bank loans. We would like to investigate in this paper whether income were generated due to taking of bank loans in the district of Hooghly in West Bengal. For this purpose we have collected the primary data from 400 sample borrowers who have taken loans from Commercials, Regional Rural and Co-operative bank. Given the sample observations of 400 households, we intend to estimate the linear model with the help by ordinary least squares method. The study shows that the income generation due to intake of bank loans is influenced by the worker population ratio, productive use of loans, shortfall of desired investment, interest rate differential and education. It is shown that the growth rate of income or income generation varies directly with the level of income.