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Determinants Of Rural Demand For Credit

Author

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  • Oentoeng Soebroto

Abstract

Farmers' demand for credit is to a large extent governed by the same sort of factors that govern credit demands of other industrial groups. The special conditions of farming, however, do exert a material influence and give rural demand for credit some features which distinguish it sharply from the demand for industrial credit. Farm operators often hold strong views on the merits and demerits of borrowing as such. One may perhaps speak of two planes of attitude. The first is a kind of "background attitude" which conditions farmers attitude to debt as such. The other is a kind of "situational attitude", which is relevant when a farmer is faced with a specific investment problem. Objective and subjective factors seem to operate on both planes; this partly explains the difficulty in classifying them or in predicting their impact.

Suggested Citation

  • Oentoeng Soebroto, 1959. "Determinants Of Rural Demand For Credit," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 10, pages 213-226.
    • Handle: RePEc:lpe:efijnl:195911
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