IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v25y1997i2p267-280.html
   My bibliography  Save this article

Why institutional credit agencies are reluctant to lend to the rural poor: A theoretical analysis of the Indian rural credit market

Author

Listed:
  • Basu, Santonu

Abstract

No abstract is available for this item.

Suggested Citation

  • Basu, Santonu, 1997. "Why institutional credit agencies are reluctant to lend to the rural poor: A theoretical analysis of the Indian rural credit market," World Development, Elsevier, vol. 25(2), pages 267-280, February.
    • Handle: RePEc:eee:wdevel:v:25:y:1997:i:2:p:267-280
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-750X(96)00103-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Donald R. Hodgman, 1960. "Credit Risk and Credit Rationing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 74(2), pages 258-278.
    2. Bell, Clive, 1988. "Credit markets and interlinked transactions," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 16, pages 763-830, Elsevier.
    3. Bhaduri, Amit, 1973. "A Study in Agricultural Backwardness under Semi-Feudalism," Economic Journal, Royal Economic Society, vol. 83(329), pages 120-137, March.
    4. U. Tun Wai, 1957. "Interest Rates outside the Organized Money Markets of Underdeveloped Countries," IMF Staff Papers, Palgrave Macmillan, vol. 6(1), pages 80-142, November.
    5. Braverman, Avishay & Srinivasan, T. N., 1981. "Credit and sharecropping in agrarian societies," Journal of Development Economics, Elsevier, vol. 9(3), pages 289-312, December.
    6. Basu, Kaushik, 1983. "The Emergence of Isolation and Interlinkage in Rural Markets," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 262-280, July.
    7. Santonu Basu, 2001. "Incomplete Information and Asymmetric Information," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 4(2), pages 23-48, November.
    8. Dasgupta, Partha, 1995. "An Inquiry into Well-Being and Destitution," OUP Catalogue, Oxford University Press, number 9780198288350.
    9. Bardhan, Pranab K, 1980. "Interlocking Factor Markets and Agrarian Development: A Review of Issues," Oxford Economic Papers, Oxford University Press, vol. 32(1), pages 82-98, March.
    10. Basu, Santonu, 1994. "Deregulation of the Australian Banking Sector: A Theoretical Perspective," Australian Economic Papers, Wiley Blackwell, vol. 33(63), pages 272-285, December.
    11. Bhagwati, Jagdish N & Chakravarty, Sukhamoy, 1969. "Contributions to Indian Economic Analysis: A Survey," American Economic Review, American Economic Association, vol. 59(4), pages 2-73, Part II S.
    12. Bell, Clive, 1990. "Interactions between Institutional and Informal Credit Agencies in Rural India," The World Bank Economic Review, World Bank, vol. 4(3), pages 297-327, September.
    13. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    14. Basu, Kaushik, 1987. "Disneyland monopoly, interlinkage and usurious interest rates," Journal of Public Economics, Elsevier, vol. 34(1), pages 1-17, October.
    15. A. G. Chandavarkar, 1965. "The Premium for Risk as a Determinant of Interest Rates in Underdeveloped Rural Areas: Comment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 79(2), pages 322-325.
    16. Ghose, Ajit K. & Saith, Ashwani, 1976. "Indebtedness, tenancy and the adoption of new technology in semi-feudal agriculture," World Development, Elsevier, vol. 4(4), pages 305-319, April.
    17. anonymous, 1965. "Reply to R. Banerjee," Management Science, INFORMS, vol. 11(7), pages 755-756, May.
    18. Bhaduri, Amit, 1977. "On the Formation of Usurious Interest Rates in Backward Agriculture," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 1(4), pages 341-352, December.
    19. Basu, K. & Pattanaik, P. K. & Suzumura, K. (ed.), 1995. "Choice, Welfare, and Development: A Festschrift for Amartya K. Sen," OUP Catalogue, Oxford University Press, number 9780198287896.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Lawrence, 2002. "Household Credit and Saving: Does Policy Matter?," Development and Comp Systems 0211001, University Library of Munich, Germany.
    2. Orso, Cristina Elisa, 2009. "Formal and informal sectors: Interactions between moneylenders and traditional banks in the rural Indian credit market," POLIS Working Papers 135, Institute of Public Policy and Public Choice - POLIS.
    3. Langyintuo, Augustine S. & Lowenberg-DeBoer, James & Arndt, Channing, 2003. "Potential Impacts Of The Proposed West African Monetary Zone On Cowpea Trade In West And Central Africa," 2003 Annual meeting, July 27-30, Montreal, Canada 22236, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Gupta, Vivek & Bhandari, Basu D. & Gautam, Tej K., 2016. "Choice of Income Generating Activities by Nepalese Farmers," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230131, Southern Agricultural Economics Association.
    5. Shehla Amjad & SAF Hasnu, 2007. "Smallholders’ Access to Rural Credit: Evidence from Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(2), pages 1-25, Jul-Dec.
    6. Peter Lawrence, 2006. "Finance and development: why should causation matter?," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(7), pages 997-1016.
    7. Santonu Basu, 2003. "Why do Banks Fail?," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(3), pages 231-248.
    8. Abbas Ali Chandio & Yuansheng Jiang & Feng Wei & Abdul Rehman & Dan Liu, 2017. "Famers’ access to credit: Does collateral matter or cash flow matter?—Evidence from Sindh, Pakistan," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1369383-136, January.
    9. Smith, Laurence E. D. & Stockbridge, Michael & Lohano, Hari Ram, 1999. "Facilitating the Provision of Farm Credit: The Role of Interlocking Transactions Between Traders and Zamindars in Crop Marketing Systems in Sindh," World Development, Elsevier, vol. 27(2), pages 403-418, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:foi:wpaper:2010_14 is not listed on IDEAS
    2. Platteau, J.-Ph. & Abraham, A., 1985. "An Inquiry Into Quasi-Credit Systems In Traditional Fishermen Communities: The Role Of Reciprocal Credit And Mixed Contracts," Discussion Papers 272827, University of Warwick - Department of Economics.
    3. repec:foi:wpaper:2010_13 is not listed on IDEAS
    4. repec:phd:pjdevt:jpd_1989_vol__xvi_no_1-a is not listed on IDEAS
    5. Chaudhuri, Sarbajit & Gupta, Manash Ranjan, 1996. "Delayed formal credit, bribing and the informal credit market in agriculture: A theoretical analysis," Journal of Development Economics, Elsevier, vol. 51(2), pages 433-449, December.
    6. Allen Blackman, 2001. "Why don't Lenders Finance High-Return Technological Change in Developing-Country Agriculture?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1024-1035.
    7. Khanna, Madhulika & Majumdar, Shruti, 2020. "Caste-ing wider nets of credit: A mixed methods analysis of informal lending and caste relations in Bihar," World Development Perspectives, Elsevier, vol. 20(C).
    8. Manojit Bhattacharjee & Meenakshi Rajeev & B.P. Vani, 2009. "Asymmetry in Information and Varying Rates of Interest," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 3(4), pages 339-364, October.
    9. Besley, Timothy, 1995. "Savings, credit and insurance," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 36, pages 2123-2207, Elsevier.
    10. Zeller, Manfred & Ahmed, Akhter U. & Babu, Suresh Chandra & Broca, Sumiter Singh & Diagne, Aliou & Sharma, Manohar, 1996. "Rural finance policies for food security of the poor: methodologies for a multicountry research project," FCND discussion papers 11, International Food Policy Research Institute (IFPRI).
    11. Tarp, Finn, 2003. "Udviklingsbistanden i perspektiv," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2003(1), pages 164-186.
    12. Shami, Mahvish, 2012. "The Impact of Connectivity on Market Interlinkages: Evidence from Rural Punjab," World Development, Elsevier, vol. 40(5), pages 999-1012.
    13. Anita Gill, 2006. "Interlinked Agrarian Credit Markets in a Developing Economy: A Case Study of Indian Punjab," Working Papers id:760, eSocialSciences.
    14. Madestam, Andreas, 2014. "Informal finance: A theory of moneylenders," Journal of Development Economics, Elsevier, vol. 107(C), pages 157-174.
    15. Riekhof, Marie-Catherine, 2019. "The insurance premium in the interest rates of interlinked loans in a small-scale fishery," Environment and Development Economics, Cambridge University Press, vol. 24(1), pages 87-112, February.
    16. Wendy Olsen, 2008. "Pluralism, Tenancy and Poverty: Cultivating Open-Mindedness in Poverty Studies," Working Papers id:1684, eSocialSciences.
    17. Jean–Philippe Platteau, 1984. "The Drive Towards Mechanization of SmallScale Fisheries in Kerala: A Study of the Transformation Process of Traditional Village Societies," Development and Change, International Institute of Social Studies, vol. 15(1), pages 65-103, January.
    18. C.S.C Sekhar & Namrata Thapa, 2021. "Agricultural Market Imperfections And Farm Profitability In India," IEG Working Papers 440, Institute of Economic Growth.
    19. repec:phd:pjdevt:jpd_1989_vol__xvi_no__1-e is not listed on IDEAS
    20. Pender, John L., 1996. "Discount rates and credit markets: Theory and evidence from rural india," Journal of Development Economics, Elsevier, vol. 50(2), pages 257-296, August.
    21. Kochar, Anjini, 1997. "An empirical investigation of rationing constraints in rural credit markets in India," Journal of Development Economics, Elsevier, vol. 53(2), pages 339-371, August.
    22. Janvier D. Nkurunziza, 2005. "Reputation and Credit without Collateral in Africa`s Formal Banking," Economics Series Working Papers WPS/2005-02, University of Oxford, Department of Economics.
    23. LaDue, Eddy L. & Allen, Sandra, 1993. "Regulatory, Efficiency, and Management Issues Affecting Rural Financial Markets," Staff Papers 121348, Cornell University, Department of Applied Economics and Management.
    24. Bart Minten & Anneleen Vandeplas & Johan Swinnen, 2011. "Regulations, Brokers, and Interlinkages: The Institutional Organization of Wholesale Markets in India," Journal of Development Studies, Taylor & Francis Journals, vol. 48(7), pages 864-886, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:25:y:1997:i:2:p:267-280. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.