Impact of Primary Co-Operative Agricultural and Rural Development banks’ Credit in Tiruvannamalai district

Primary Co-operative Agricultural and Rural Development Banks lend long term loans for the agriculturists, non- agriculturists and rural poor and landless agricultural laborers. They provide credit for the purpose of land development, purchase of tractors and motor pumps etc. But in the recent past, as per the guidelines of the NABARD, the banks have started lending for many new diversified purposes like loans for non minor irrigation, non farm sector, goat rearing, dairy development, purchase of tyre cart etc. because traditional lending his been saturated in many states. Against this back ground, a micro study has been conducted in Tiruvannamalai District to study the end results of the diversified loans and this paper attempts to analyze the impact of the PCARDB's credit on the beneficiaries and to find out whether the loans increased the income of the borrowers or not.