Borrowing and Utilization of Credit in Satara (M. S.)

The average per family amount of borrowing was Rs. 11,775.04. Out of 90, 81 farmers (90%) borrowed short term loan (Rs. 6301.57), 21 farmers (23.33%) borrowed medium term loan (Rs. 1196.68). The average long term loan borrowed was Rs. 4276.79. It was observed that 24.94% of the total amount of loan was misutilized. As such, 94.87% of total amount borrowed was from Institutional sources and this proportion increased with increase in size of holding. As the Indian farmers cannot meet the total requirement of funds of their own, they borrow loans from institutional financing sources. In spite of the fact that many nationalized and co-operative banks are playing a vital role, many farms are still capital starved. The present investigation is an attempt to study the extent of amount borrowed and their utilization pattern by the farmers from Satara district.