A study of repayment behavior of farmers in India: With special reference to kisan credit card scheme
Dr. Anshuja Tiwari and Sarita Goyal
India is an agricultural country. Our farmers are always involved in agricultural activities to produce grain for themselves and also for others. Small farmers take loan for each every small requirement from sahukars and private credit company at higher rate of interest; Due to high rate of interest it becomes very difficult for them to repay the loan amount along with interest. As a result they lose their landholdings as well as their houses also. To solve this problem, Government introduced KCC, which provide loan to farmers at very low or zero rate of interest.
Present study focuses on Repayment Behaviour of Kisan Credit Card holder Borrowers of Obedullaganj Block. The current study attempts to determine the Loan Repayment Pattern of KCC as seen by farmers. The study was conducted using a sample of 200 KCC holders in the Obedullaganj Block of Raisen district (M.P.). collected during the year 2020 to 2021. In the research area it was found that the average loan sanctioned by banks to KCC holders was 155770.37 per KCC holder every financial year. Results shows that 16 (32) percent of the total KCC borowers out of 100 (200) percent have closed their accounts by fully repaying the original amount plus interest. It was discovered that 39% of the respondents had paid their debt on time. Closed and regular accounts together, account for 55% of the total. This demonstrates the sample borrowers’ excellent repayment performance. In addition, irregular and default accounts for 34.5 percent and 10.5 percent of the total.
Dr. Anshuja Tiwari, Sarita Goyal. A study of repayment behavior of farmers in India: With special reference to kisan credit card scheme. Int J Res Finance Manage 2021;4(1):62-66. DOI: 10.33545/26175754.2021.v4.i1a.131