%0 Journal Article
%@ 0971-3441
%A Kumar, R
%A Vikraman, S
%A Bantilan, C
%A Lagesh, M A
%A Yadav, U S
%D 2015
%F icrisat:9150
%I Agricultural Economics Research Association (AERA)
%J Agricultural Economics Research Review
%K Rural credit, Agricultural credit, Interest subvention, Eastern region, SAT region, Village level studies, Panel data, India, Longitudinal village studies
%P 137-150
%T Truncated Access to Institutional Agricultural Credit as a Major Constraint for Rural Transformation: Insights from Longitudinal Village Studies
%U http://oar.icrisat.org/9150/
%V 28
%X The study has examined the trend of formal credit growth and its influence on rural transformation in  terms of accelerating growth in household income levels. It has also identified the factors influencing the  access to formal agricultural credit in the study regions, viz. eastern and semi-arid tropics (SAT) of India.  The longitudinal household level data of about 1200 households in three states each in these two regions  have been analysed for the period 2010 to 2013. The study has observed that the poor access to formal  credit has compelled these households to take loan from informal sources who sometimes charge interest  @ 60 to 120 per cent per annum, threatening the livelihoods of these smallholders and poor households.  During the study period of three years (2010 - 2013), no change in situation was visible in these villages  and the access to formal sources of agricultural credit seems to remain truncated. The main reasons for  this disturbing trend is the lack of institutional framework to provide cheap and subsidized credit to these  marginal and landless households, who take land on lease for cultivation. The Tobit model has been fitted  to determine the accessibility to formal agricultural credit in these regions. The study has highlighted the  need of building a strong and inclusive financial infrastructure to provide necessary credit support to the  smallholder farmers in the eastern and SAT regions for bringing a rapid rural transformation.
%Z This article is part of the issue " Conference Issue on Inter- and Intra - Sectoral Dynamics for Transforming Indian Agriculture" published by Agricultural Economics Research Review (AERI), India in 2015