An analytical study of agricultural credit advanced by primary cooperative agricultural and rural development bank of hisar
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Date
2011
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CCSHAU
Abstract
The objectives of present study were to study the performance of loan advanced by the bank, to
examine the loan utilization pattern of the loanee farmers, to study the impact of loan waiver scheme
on recovery of credit. Results revealed that the number of membership, borrowings, working capital,
loan outstanding, loan advanced, overdues and cost of management of the PCARBD has increased
over the study period. The amount of share capital has decreased over the study period. The share of
owned funds to total working capital was very small in proportion. The PCARDB is highly dependent
on borrowed funds from higher financial institutions for undertaking various credit and service
activities. The unit transaction cost increased over time due to increase in cost of management. The
major proportions of loans were given to minor irrigation purpose which ranges from 19.34 to 56.09
percent. The amount of overdues and number of defaulters has increased because of the loan waiver
scheme. Farmers preferred loan in the form of cash than in kind so as to spend it according to their
own requirements. Poor financial position and urgent need compelled the farmers to divert some
portion of their loan for some other unspecified purposes. The farmers do not intend to make
repayment hoping to get interest or part of principal amount remitted on account of political
promises. The irregular payment or no payment shall certainly lead to improper functioning of the
bank as these may starve of finance and further lending to needy borrowers affected adversely.
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Keywords
Organic fertilizers, Sowing, Rhizobium, Yields, Farmyard manure, Planting, Application methods, Vermicomposting, Biofertilizers, Livestock