Household Borrowing Preferences: A Comparative Study of Dehradun and Uttarkashi

The principal aim of this study is to employ multinomial logistic regression and a probit model to examine and contrast the influence of socio-economic, demographic, and household attributes on the borrowing preferences and motivations of individuals residing in the Dehradun and Uttarkashi districts of Uttarakhand. The research concentrates on the behaviour of households with regard to loans, with an emphasis on the heterogeneity of household loan preferences and the factors that determine the significance of loan motives. This research examines and contrasts the effects of a variety of determinants on the borrowing preferences and objectives of households in both districts. The research is conducted exclusively using primary sources of data. Diverse borrowing intentions were noted among the respondents residing in both districts. According to the findings of the analysis, age, income, and level of education are significant determinants in the context of borrowing. Governments and banks should encourage household financing and expand opportunities for household investment, according to the study, in order to facilitate the desired economic expansion.