Loan Acquisition and Cost of Acquisition from Non-institutional Agencies in Maharashtra

The availability of the credit in requisite quantities and at required time is of paramount importance in agriculture. The small and marginal farmers and even, the medium sized famers are out of reach of institutional credit. It's become therefore, imperative to know the sources ofnon-institutional agencies and the overdues status such famers in the state of Maharashtra. The findings of the study are concludes as in case of non-institutional loan, maximum loan was acquired from the money lenders. In the case of non-institutional agencies, the per cent gap was highest for medium farmers (−23.47 per cent). Money lenders were more liberal to sanction the non-institutional loan requirement of farmers. The cost on items like stamp duty, processing fee and other sundry expenses incurred were higher in overall farmers. The overdues of non-institutional loans were higher in case of medium size group of farmers (74.89 per cent). Majority of the farmers have taken loan from money lenders. Therefore, it is necessary that the farmers should make some investment on other subsidiary occupations like dairy, poultry, sericulture, mushroom production and the likes which will be helpful for generation of income and employment and thereby increasing the farmers own equity/funds for the developmental activities.