International Journal of Management (IJM)

Volume 11, Issue 3, March 2020, pp. 175–185, Article ID: IJM_11_03_019
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A STUDY ON FARMERS PERCEPTION

TOWARDS AGRICULTURAL LOANS IN RURAL
AREAS WITH REFERENCE TO RAYALASEEMA
REGION, ANDHRA PRADESH
K. Sarada Siva Reddy
Research Scholar, School of Management, Vel Tech Rangarajan Dr.Sagunthala R&D Institute
of Science and Technology, Avadi, Chennai, India.

Dr. K. Ravishankar
Associate Professor, School of Management, Vel Tech Rangarajan Dr.Sagunthala R&D
Institute of Science and Technology, Avadi, Chennai, India.

ABSTRACT
This paper aims to provide the overall state of rural agriculture loans in the
Rayalaseema region, its status, the impact of credit lending, the role of banking
institutions and governance in rural finance expenditures, and the improvement,
barriers, and challenges throughout the years. The objective measure of access to
rural agriculture loans is variable which help as to measure credit lending and the
portfolio level of agriculture credit to find managing in financial institution
performance. Therefore, the results show that the banks give more access than micro
finance institutions at summation of large loans for agriculture, but at other side
banks give less compared to micro financial institutions at summation of small loans
for agriculture.
Keywords: Rural agriculture loans, access to finance, credit lending
Cite this Article: K. Sarada Siva Reddy, Dr. K. Ravishankar, A Study on Farmers
Perception towards Agricultural Loans in Rural Areas with Reference to Rayalaseema
Region, Andhra Pradesh, International Journal of Management (IJM), 11 (3), 2020,
pp. 175–185.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=3

1. INTRODUCTION
According to recent data, the global population growth by 2050 is projected to increase
dramatically. As a result of this, population growth will increase demand for food. Due to
increased food demand, it will be impossible to meet these requirements without
strengthening the private production sector. The banking sector in developing countries gives
less credit to the agricultural sector and its development. This is the case, although in the

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 A Study on Farmers Perception towards Agricultural Loans in Rural Areas with Reference to
Rayalaseema Region, Andhra Pradesh

developing countries the distribution of agriculture in general GDP is quite large. The barrier
for not lending to developing countries is not the lack of liquidity in the banking sector, but
the lack of willingness to make the development of the agricultural sector. This fact makes
investments in agriculture limited by both participating actors, both farmers and agricultural
companies. These agricultural loans, which are available to developing countries, tend to be
informal and of a short duration, which is directly related to long-term investments. These
informal agriculture loans only partially cover the needs of farmers and small agricultural
businesses, and usually of high interest. Due to the importance of improving and developing
rural economy, which affects the overall economy of a country, employment, and poverty
reduction, expanding the rural agriculture loans is the main goal of the institutions and
governments. Therefore, the performance and the risk of these agriculture loans tend to be
higher. The interest rates for agriculture loans are higher than the loans for other activities in
the region, even though on the 2015 has been recorded a decrease of interest rate of 3.45%.In
the Rayalaseema region agriculture loans are considered as an important instrument for
increasing agricultural production and revenue growth, through new technology to get inputs
and increase productivity. Challenges faced by financial institutions by providing financial
products are threefold. Transaction costs for achieving remote rural populations. The study is
necessary because the Rayalaseema Region is considered to be the most backward region in
India itself. Many farmers have been committing suicides every year. Most of the youth are
leaving for other places for living. There are very few rain falls and the sand is also not fertile.
There are no live rivers in the region. Hence it will be helpful for the elected Government of
the region to take steps to improve the Agriculture loaning system. There is a lot of scope for
the study because it is a very vast area. Any amount of investigation can be made since
farmers are in very poor condition there. For the farmers is a burning problem. Help for the
farmers of the Rayalaseema Region is inevitable. If finance is supplied to the farmers
regularly, there may be some improvement in their living standards and their distress may be
lessened to some extent.

2. LITERATURE REVIEW
Mohan, S (2008) (Mohan, S, “Factors Determing the profitability of Central Co-operative
bank”, Tamilnadu Journal of Co-operation, Vol.8, No.4, Feb, 2008, pp.63-69.) has examined
the factors determining the profitability of central co-operative bank. He observes that
profitability ratios invite the serious attention of the management to put an integrated effort to
correct the financial Performance. He suggests that the bank should expand its banking
operations in such a way that the non-interest income increase substantially in the near future.
The European Association of co-operative Banks (2009) (European Association of Co-
operative Banks (April 2009), European Co-operative Banks in Financial and Economic
Turmoil”, Co-operatives in a world in Crisis (Contribution of EACB to the Experts Group
meeting) United Nations- New York.), in its article titled “European Co-operative Banks in
Financial and Economic Turmoil” was of the view that despite extensive interest rate cuts,
liquidity injections and support measures the financial markets were not stable. Figures
showed that global economy will experience a deep recession in 2009 and perhaps also 2010.
But as has been demonstrated, most co-operative bank groups had fortunately been able to
weather the financial crisis relatively well so far without any state support. This was due to
the fact that they generally had limited exposure to toxic assets, a predominant focus on
domestic retail banking with stable results, strong capital buffers and principally conservative
risk management. The co-operative banks that did report losses due to the subprime crisis
were affected primarily at the level of subsidiaries and at the level of APEX institutions. The
local banks were not hitted directly by the financial crisis. Co-operative banks were

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 K. Sarada Siva Reddy, Dr. K. Ravishankar

consequently solid and robust at the local level and accordingly demonstrated stability of the
retail banking industry in Europe.
Mayil Murugan, A (2009) (Mayil Murugan, A “An Empirial Analysis of Capital
Adequacy Ratio in Central Co-operative Banks” Tamilnadu Journal of Co-operation, Vol.9
No, Aug, 2009,pp.57-62.) made an Empirical analysis on capital adequacy ratio in Central
Co-operative Banks. He observed that capital adequacy has reduced the likelihood of failure
and increases liquidity of the bank. He has concluded that fulfilling the capital adequacy norm
is not at all the problem for the bank for ever.
Singh and Singh (2010) (Singh and Singh (2010), “Technical and Scale Efficiency in
District Central Co-operative Banks of Punjab – A Non parametric Analysis”, Indian Co-
operative Recivew, Vol. XXXXVII, No.1,(Jan),New Delhi.) , in their study titled, “Technical
and Scale Efficiency in District Central Co-operative Banks of Punjab – A Non parametric”
Had attempted to investigate the extent of technical efficiency across 20 DCCBs of Punjab
with the help of data envelopment analysis. They brought out that size of DCCBs and profits
had been affecting themeasures of technical efficiency significantly. The study further
revealed that DCCBs of Punjob were suffering from the problems of managerial irregularities
and improper production scale. Appropriate policy interventions by state government, RBI
and NABARD have suggested by the authors.
Thomas Victor Raja and Chandramohan (2011) (Thomas Victor Raja, D and
Chandramohan, R “Fiancing of women Entrepreneurs by District central Co-operative Banks
in Tamil Nadu”, Sourthen Economist, Vol.49, Oct-15, 2011,pp.19-22.) , in their study titled
“Financing of Women Entrepreneurs by District central co-operative Banks in Tamil Nadu”,
They examined study finding revealed that the women entrepreneurs considered for the study
are deserving enough capacity to avail the loans, the borrowing and the repayment of loan did
not make any hindrance. The borrowings of the select DCCBs were mainly focusing more on
urban women empowerment. This trend must be acknowledgment and recognized effort need
to be made to giving more In the case of financial inclusionary attitude, the select DCCBs
have been rendering good services to the women community by providing loans in promoting
new enterprises of the study area.
Razaullahkhan, M and Hasyikhairul Makeen, (2012) (Razaullahkhan, M and Hasyikhairul
Makeen, “Non-Performing Assets: Co-operative Banks in Jalna”, Sourthen Economist titled
“Non-Performing Assets: Co-operative Banks in Jalna”,They examined the financial record of
6 co-operative banks of Jalna and Parbhani districts has been used in the form of Annual
Reports from the year 2003-04 to 2009-2010, for the purpose of research. Almost all the
banks have shown a fluctuating trend of Net NPA. Some of the banks have succeeded in
reducing the quantum of Net NPA in last two years of study. All the banks have earned
certain profit in the entire period of the study period except one bank in one year. The C.A.R.
of all the banks is above the prescribed limit of 9% laid down by the RBI.
Sunitha,nR and Raju, J.K, (2013) (Sunitha, R and Raju, J.K, “A comparative study of
NPAs of Banking sector”, southern Economist,vol.51, April-15,2013,pp.9-12) in their study
titled “A Comparative study of NPA’s of Banking Sector”, The study observed that the Indian
banking sectors especially the private sector have been facing the big challenge of NPAs.
NPAs are an important parameter in the analysis of financial performance of banks.
Reduction of NPAs is necessary to improve profitability of the banks and comply with capital
adequacy norms. It has been observed that the banking sector in India has responded very
positively in the field of enhancing the role of market forces regarding measured of prudential
regulations of accounting, income recognition, provisioning and exposure, introduction of
CAMELS supervisory rating system and reduction of NPA and up gradation of technology.

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 A Study on Farmers Perception towards Agricultural Loans in Rural Areas with Reference to
Rayalaseema Region, Andhra Pradesh

Problems of finance for agricultural and non-agricultural lending operation, especially

institutional finance has often given rise to controversies and paucity of finance has been a
major irritant to the farming and non-forming community. It is learnt from the review of
literature, that the problem has received considerable attention from academicians and
researchers, while the number of studies on the need for increasing credit, evaluation of the
performance of co-operative loans have not been given due importance.
In recent years non-repayment is posing an alarming problem to the co-operative due to
which number of co-operative banks are unable to disburse fresh loans. If these terms persist
in future, the very existence of co-operative banks will be in jeopardy. Hence it is a need of
the day to examine this problem, arrive at definite conclusion and suggest remedies.
Even such studies were not undertaken in Composite Thanjavur District which is
proclaimed as the Granary of Tamil Nadu declared as drought prone area for more than a half
decade and subsequently worst hit by flood and Tsunami. Kumbakonam Central Co-operative
Bank is located in the granary of Tamil Nadu. Hence loan assets management of
Kumbakonam Central Co-operative Bank Limited, Kumbakonam has been undertaken. The
present study will fill the gap of knowledge about loan assets management in agricultural and
non-agricultural credit in KCCB of Tamil Nadu state as no such study has been made so far in
this respect.

3. OBJECTIVES
 To understand the general farmers characteristics in the study area with confine to
socio–economic analysis.
 To make sure the level of attitude of farmers towards settlement of agriculture loans.

4. METHODOLOGY AND OBJECTIVES

4.1. Statement of the Problem
The main problem is there is less marketing facilities. The middle men are getting a lot of
income at the cost of both the farmer and the consumer. It is already mentioned that
Rayalaseema Region is drought prone. The farmers in the area suffer from many problems.
The major problem is shortage of water for agriculture. Most of the times they take loans for
agriculture purpose from private people who charge more interest on the loans they give. The
farmers are unable to return them in time and thus they are troubled in many ways. Therefore
the recognised banks should help them with Agriculture Loans either interest free or with
minimum interest. Another problem is that they don’t get minimum price for the little
production they from lands.

4.2. Need for the study

The study is necessary because the Rayalaseema Region is considered to be the most
backward region in India itself. Many farmers have been committing suicides every year.
Most of the youth are leaving for other places for living. There are very few rain falls and the
sand is also not fertile. There are no live rivers in the region. Hence it will be helpful for the
elected Government of the region to take steps to improve the Agriculture loaning system

4.3. Scope of the study

There is a lot of scope for the study because it is a very vast area. Any amount of investigation
can be made since farmers are in very poor condition there. For the farmers is a burning
problem. Help for the farmers of the Rayalaseema Region is inevitable. If finance is supplied

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 K. Sarada Siva Reddy, Dr. K. Ravishankar

to the farmers regularly, there may be some improvement in their living standards and their
distress may be lessened to some extent.

4.4. Research Design

An Ex-post-facto Research design was adopted for the study, as the variables chosen for the
study had already occurred and is proved foul proof. Certainly Ex-post-Facto Research is a
systematic experimental enquiry in which the researchers don’t have direct control of
influencing the variables because it is one-to-one interviews and collection.

4.5. Sampling Procedure

The Rayalaseema Region is chosen intentionally for the study because the investigator
belongs to Chittoor District which is located in the same region of Rayalaseema. Secondly the
authors are very familiar with the local language which certainly helps to build up quick
rapport and also enable in-depth study combined with personal observation The Rayalaseema
region consists of four districts such as Anantapuram, Chittoor, Cuddapah and Kurnool are
selected. Each district is projected as one Block. Each Block contains seven villages which
are chosen randomly and the Respondents are interviewed instantly without any prior
information and therefore the Data collection is original. From each block seven villages were
selected randomly.
Sample size : 616
Sampling unit : Rayalaseema Region
Sampling Areas : Chittoor, Anantapuramu, Kurnool, Cuddapah districts
Overall, a total of twenty-eight (4x7) villages were selected for the investigation.

4.6. Methodology of the Study

The primary data is collected from farmers in the Rayalaseema Reggion by meeting them
personally and asking a pre-prepared questionnaire face-to-face and record their statements.
The sample size is 616. By using data collection the investigator uses random sampling by
interview method. The secondary data is collected from the already prepared sources such as
books, magazines, journals, Government websites, other theses written on the subject etc.

4.7. Tools of Analysis

The data were subjected to percentages. Percentage is the number, amount, rate etc.,
expressed as if it is part of a total which is 100. The responses of the farmers were analyzed
by using the ranking method in sum of the variables. Ranks were assigned for all the
statements as per the priorities given by the respondents.

4.8. Limitations of the Study

The study has certain limitations as indicated below:
 The study has the limitation of time resources available for a single investigator.
 The items included in the study for detailed investigation are also limited because it i
not possible to study all the areas in a short span of time.
 The area of investigation is restricted to one Block in one District. As such
generalization of the study can be extended to the areas where similar condition exist,
but may not have wider applicability.
 The study is based on the individual expression of Agriculture Loan borrowers which
may not be free from personal bias.

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 A Study on Farmers Perception towards Agricultural Loans in Rural Areas with Reference to
Rayalaseema Region, Andhra Pradesh

5. ANALYSIS AND DISCUSSION

Table 1 Distribution of respondents according to their age
S. No. Age No.of Respondents Percentage
1 Young (up to 35 years) 127 20.62
2 Middle (35-55 years) 206 33.44
3 Old (above 55 years) 283 45.94
Total 616 100

Table. No. 1 shows the distribution of respondents according to their age. There are three
categories of people according to the table. Up to the age of 35 there are 20.62 percent and
they are young. Between the age 35-55 who are middle aged are 33.44 percent. Above 55
years who are called old are 45.94 percent. Thus a total no. of 616 respondents has been
questioned. It is observed that the majority are old according to the table.

Table 2 Distribution of respondents according to their education

S. No. Education No. of Respondents Percentage
1 No Formal Education 428 69.48
2 Below High School 132 21.43
3 High Secondary 56 9.09
4 Graduate 0 0
5 Post Graduate 0 0
6 Professional 0 0
Total 616 100

Table No: 2 shows the distribution of respondents according to their education. The
percentage of normal education is the highest with 69.40 and at the same time the percentage
Graduate, Post-graduate and professionals is zero because it is rural areas of Rayalaseema.
The percentage of Below High School is 21.43 and the Percentage of higher secondary is
9.09.

Table 3 Distribution of respondents according to their Area of living

S. No. Area of Living No. of Respondents Percentage
1 Rural 504 81.82
2 Urban 112 18.18
Total 616 100

Table No: 3 shows the Distribution of respondents according to their Area of living. The
percentage of the area of Rural living is 81.82 and it is a lot more than the Urban living . The
Urban Living is just 18.18 percent. Thus the rural area where people depend upon Agriculture
is more according to the table.

Table 4 Distribution of respondents according to their Marital Status

S. No. Marital Status No. of Respondents Percentage
1 Married 539 87.5
2 Unmarried 77 12.5
Total 616 100

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 K. Sarada Siva Reddy, Dr. K. Ravishankar

Table No: 4 shows the Distribution of respondents according to their Marital Status. The
percent of Married is 87.5 which is a lot more than the unmarried. The Unmarried is just 12.5
percent. It is clear from the table that both Married and Unmarried depend on Agriculture a
lot.

Table 5 Distribution of respondents according to the Status of Family

S. No. Status of Family No. of Respondents Percentage
1 Nuclear 476 77.27
2 Joint 140 22.73
Total 616 100

Table No: 5 shows the Distribution of respondents according to the Status of Family. The
percentage of Nuclear is 77.27 and the percentage of Joint families is 22.73. Majority being
Nuclear shows the self-centric attitude of the younger generation which is not good for the
future.

Table 6 Distribution of respondents according to their Members of Family

S.
Members of Family No. of Respondents Percentage
No.
1. Below 3 Members 448 72.73
2. 3-6 Members 168 27.27
3. 7-9 Members 0 0
4. Above 9 Members 0 0
Total 616 100

Table No: 6 show the Distribution of respondents according to their Members of Family.
The percentage of below 3 members is 72.73 and between 3 and 6 the percentage is 27.27.
Because of more Nuclear families more number of members are not visible in the table.

Table 7 Rank ordering of statement of Social improvement.

S. No. Particulars No. of Respondents Percentage Rank
1. Recognition by other farmers 401 65.2 2
2. Increased social contacts 455 73.9 1
3. Recognized as an opinion 192 31.2 3
4. Membership in one 83 13.5 4
organization
5. Membership in more than one 56 9.2 5
organization

From the above table it is observed that, majority of respondents possessed increased
social contact after getting Agriculture loan (rank1) followed by recognition by other farmers
(rank2) recognized as an opinion leader (rank3), membership in one organization (rank4)and
membership is more than one organization (rank5). Farmers increased their social contacts
with their fallow farmers, neighbours and relatives. They have been identified by the fellow
farmers as the avail of Agriculture loans may influence other farmers

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 A Study on Farmers Perception towards Agricultural Loans in Rural Areas with Reference to
Rayalaseema Region, Andhra Pradesh

Table 8 Distribution of respondents according to their social improvement.

S.No Social improvement No. of Respondents Percentage
1 Low 364 59.09
2 Medium 198 32.14
3 High 54 8.77
Total 616 100

From the above table it is clearly shows that, majority of the respondents 59.09%
possessed low social improvement followed by medium32.14% and high 8.77% social
improvement.

Table 9 Distribution of respondents according to their economic improvement

S.No Economic improvement No. of Respondents Percentage
1 Low 437 71.00
2 Medium 138 27.21
3 High 11 1.79

Table No. 9 indicated that there was not much economic improvement due to Agriculture
loan system. This was due to the reason that Agriculture loan alone does not make significant
economic difference in terms of purchase of new additional land, equipment, sprayers etc.The
agriculture loan was invested on activites like hiring charges, wages etc. which can not
directly contribute to the economic improvement.

Table 9 Rank ordering of the statements of level of attitude of farmers towards agriculture loan.
S.No Particulars SA A UD DA SD NR Rank
1 Agricultural loan will help farmers 184 278 72 43 39 616 I
(29.87) (45.12) (11.68) (6.98) (6.33)
2 Agricultural loans are easily 151 252 96 64 53 616 XI
accessible (24.51) (40.90) (15.58) (10.38) (8.60)
3 Agricultural loans system will remove 106 143 237 78 52 616 XX
all The bottlenecks faced by (17.20) (23.21) (38.47) (12.66) (8.44)
cultivators
4 Agricultural loan amount per acre is 162 245 75 68 66 616 XVIII
not adequate to meet all the (26.29) (39.77) (12. 17) (11.03) (10.71)
production expenses
5 Productivity will be increased by 46 78 112 143 237 616 XXI
agricultural loans (7.46) (12.66) (18.18) (23.21) (38.46)
6 Taking agricultural loans generate 51 62 246 153 104 616 XVII
more employment (8.27) (10.06) (39.91) (24.83) (16.88)
7 Agricultural loan system creates 147 256 98 74 41 616 VIII
interest to the farmers to increase the (23.86) (41.55) (15.90) (12.01) (6.65)
production by increasing area under
cultivation
8 Food problems of our country can be 55 87 228 134 112 616 XXVI
solved by this agricultural loan system (8.92) (14.12) (37.01) (21.75) (18.18)
9 Agricultural loan system is helpful to 68 76 234 141 97 616 XXIII
rich farmers only (11.03) (12.33) (37.98) (22.88) (15.74)
10 Seasonality is fixed in the recovery of 133 242 91 84 66 616 XXV
agricultural loans (21.59) (39.28) (14.77) (13.63) (10.71)
11 Getting agricultural loan is against 41 54 112 119 236 616 XXII
prestige and status of farmers (6.65) (8.76) (18.18) (19.31) (38.31)
12 Illiterate farmers are unaware of the 57 64 258 133 104 616 VII
procedure of getting loan (9.25) (10.38) (41.88) (21.59) (16.88)
13 Farmers have to spend money initially 128 264 78 (12.66) 81 65 616 III

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 K. Sarada Siva Reddy, Dr. K. Ravishankar

forgetting agricultural loans (20.77) (42.85) (13.14) (10.55)

sanctioned
14 Influence is required to get the 66 78 91 134 247 616 XIIII
agricultural loans (10.71) (12.66) (14.77) (21.75) (40.09)
15 High yielding varieties can be 164 252 113 48 39 616 XII
cultivated by providing agricultural (26.62) (40.90) (18.34) (7.79) (6.33)
loans
16 Agricultural loan system plays an 152 248 107 56 53 616 XIII
important role in transforming (24.67) (40.25) (17.37) (9.09) (8.60)
traditional agriculture into modern
agriculture
17 Present procedure of lending of 66 74 246 127 103 616 XV
agricultural loan is not satisfactory (10.71) (12.01) (39.93) (20.61) (16.72)
18 Too much of procedural delay is 69 78 84 132 253 616 IX
involved for obtaining agricultural (11.20) (12.66) (13.63) (21.42) (41.07)
loans
19 Taking agricultural loans will 234 146 97 72 67 616 XXIIII
influence agriculture pattern (37.97) (23.70) (15.74) (11.68) (10.87)
20 Agricultural loan system is good, if it 153 262 74 68 59 616 V
lays down a specific procedure to be (24.83) (42.53) (12.01) (11.03) (9.57)
followed by the society or bank
21 Majority of the farmers do not get 246 154 82 73 61 616 XVI
agriculture loan from lending agencies (39.92) (25.00) (13.31) (11.85) (9.90)
in time
22 Though the agriculture loan system is 49 86 106 137 238 616 XVIIII
good, vested interests are working (7.95) (13.96) (17.20) (22.24) (38.63)
against the success of agricultural loan
system
23 Farmers are not getting higher prices 96 148 253 62 57 616 X
as they have to repay the agriculture (15.58) (24.02) (41.07) (10.06) (9.25)
loan system
24 Rate of interest is high under 47 54 86 153 276 616 II
agricultural loan system (7.62) (8.76) (13.96) (24.83) (44.80)
25 Agricultural loan is more beneficial to 148 257 113 54 44 616 VI
farmers since it is provided in cash (24.02) (41.72) (18.34) (8.76) (7.14)
26 Availing institutional credit is safer 263 156 94 57 46 616 IV
than non-institutional credit (42.69) (25.32) (15.25) (9.25) (7.46)
SA: Strongly Agree; A: Agree; UD: Undecided; DA: Disagree; SD: Strongly Disagree; NR: No. of
Respondents
From the above Table No. 9 it is clearly indicated that, majority of the farmers felt that
agriculture loan will help them(Rank I) followed by rate of interest is high under agriculture
loan system (RankII), farmers have to spend money initially for getting agriculture loan
sanctioned (RankIII), availing institutional credit is safer non-institutional credit (RankIV),
agriculture loan system is good, if it lays down a specific procedure to be followed by the
society or bank (RankV), agriculture loan is more beneficial to farmers since it is provided in
cash (RankVI), illiterate farmers are unaware of the procedure of getting agriculture loan
(RankVII), agriculture loan system creates interest to the farmers to increase the production
by increasing area under cultivation (RankVIII), too much of procedural delay is involved for
obtaining agriculture loan (RankIX), farmers are not getting higher prices as they have to
repay the agriculture loan system (RankX), agriculture loans are easily accessible (RankXI),
high yielding varieties can be cultivated by providing agriculture loans (RankXII), agriculture
loan system plays an important role on transforming traditional agriculture in to modern
agriculture (RankXIII), influence is required to get the agriculture loans (RankXIIII), present
procedure of lending of agriculture loan is not satisfactory (RankXV), majority of the farmers
do not get agriculture loan from the lending agencies in time (RankXVI), taking agriculture

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 A Study on Farmers Perception towards Agricultural Loans in Rural Areas with Reference to
Rayalaseema Region, Andhra Pradesh

loans generate more employment (RankXVII), agriculture loans amount per acre is not
adequate to meet all the production expences (RankXVIII), though the agriculture loan system
is good, vested interests are working against the success of agriculture loan system
(RankXVIIII), agriculture loans system will remove all the bottlenecks faced by cultivators
(RankXX), productivity will be increased by agriculture loans (RankXXI), getting agriculture
loan is against to the prestige and status of farmers (RankXXII), agriculture loan system is
helpful to rich farmers only (RankXXIII), taking agriculture loans will influence cropping
pattern (RankXXIIII), seasonality is fixed in the recovery of agriculture loans (RankXXV),
food problem of our country can be solved by this agriculture loan system (RankXXVI).

6. CONCLUSION
From the above study it can be concluded that,
 Above 55 years who are called old are 45.94 percent and it is the majority.
 The percentage of normal education is the highest with 69.40 and it is the majority.
 The percentage of the area of Rural living is 81.82 and it is the majority.
 The percent of Married is 87.5 which is a lot more than the unmarried and therefore it
is the majority.
 The percentage of Nuclear is 77.27 and it is the majority.
 The percentage of below 3 members is 72.73 and it is the majority.
 The majority of the farmers felt that agriculture loan will help them, followed by rate
of interest is high under agriculture loan system.
 Farmers have to spend money initially for getting agriculture loan sanctioned.
 Agriculture loans in rural areas depends on a number of factors, such as purpose for
which agriculture loans is taken, tenure of the agriculture loans, interest rates. The
farmers borrows a agriculture loans meant for income generating purpose and uses it
for that then it is likely to generate a future income

REFRENCES
[1] Mohan, S, “Factors Determing the profitability of Central Co-operative bank”, Tamilnadu
Journal of Co-operation, Vol.8, No.4, pp.63-69. 2008
[2] Thomas Victor Raja, D and Chandramohan, R “Fiancing of women Entrepreneurs by
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