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Determinants of Demand for Formal Agricultural Credit in Rural India

Author

Listed:
  • Umanath, M.
  • Paramasivam, R.
  • Kavitha, V.
  • Thangadurai, T.

Abstract

The present study aimed to analyze the impact of major determinants of participating in formal credit market and amount of credit borrowed at household level in rural India. National Sample Survey Organization’s household level data on debt and investment (70th round, 2012-13) was used for analysis. Heckman sample selection model was employed to analyze the functional relationship between amount of credit availed and household level characters. Larger farm size, Kissan Credit Card and bank account holding were the major factors determining the accessibility of more amount of formal agricultural credit in rural regions.

Suggested Citation

  • Umanath, M. & Paramasivam, R. & Kavitha, V. & Thangadurai, T., 2018. "Determinants of Demand for Formal Agricultural Credit in Rural India," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 28(1).
    • Handle: RePEc:ags:ajaees:357533
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