Agricultural credit repayment scenario among small and marginal farmers: A ground reality of hamirpur district of uttar pradesh

The problem of non-repayment of loans by the farmers is causing a serious concern to the bankers and policy makers. On this line to understand the profile and repayment behaviour of small and marginal farmers the present study was undertaken in Hamirpur district of Bundelkhand region of Uttar Pradesh. The findings revealed that all the respondents borrowed from co-operative banks and co-operative agricultural societies repaid their loan after crop harvesting while the respondents availed long term loans from commercial banks repaid in installment mode. Majority of respondents repaid timely while long term loan repayment delayed. The findings indicate that 33% marginal and 31 per cent small farmers utilize credit for non-productive purposes. Major reasons for full repayment of agricultural credit were to avail future loan and better return from crops, while main reason for partial and non-repayment of agricultural credit was political agenda of political parties about policy of loan waiver i.e. excuse or rin mafi. High cost of cultivation of crops and lack of remunerative price were associated with partial repayment while illness or death of working head in family, marriage in family especially daughters and high cost of cultivation of crops as well as lack of remunerative price of produce were responsible for non-repayment of loan.