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Loan Utilisation and Repayment Behaviour: Evidence from Farmers of Haryana

Author

Listed:
  • Jakhar Babloo

    (Department of Economics, Central University of Rajasthan, India)

  • Kait Rohtas

    (Department of Economics, Chaudhary Devi Lal University, Sirsa, India)

  • Kumar Vijay

    (Department of Economics, Chaudhary Ranbir Singh University, Jind, Haryana, India)

Abstract

Subject and purpose of work: The present paper assesses the loan utilisation and repayment behaviour of loanee or indebted farmers in Haryana, India. Materials and methods: The study was conducted in Haryana state. The study is based on primary data that have been collected through schedules from a sample of 600 indebted farmers. Proportionate sampling was employed. Further, a percentage is used for data analysis. Results: The study found that about half of the loan amount was utilised by farmers in nonproductive activities that directly stimulate the debt burden on them, because this type of expenditure did not contribute to the earnings of farmers. Further, around two-fifth of the farmers were regularly repaying their loans, one fifth were defaulters and remaining two-fifth were paying their loan irregularly. Overall, Farmers’ repayment behaviour is not satisfactory. Conclusions: The non-productive usage of the loan amount is one of the main causes of their indebtedness. Reducing such expenditure is one of the main challenges for farmers without generating other sources of income.

Suggested Citation

  • Jakhar Babloo & Kait Rohtas & Kumar Vijay, 2023. "Loan Utilisation and Repayment Behaviour: Evidence from Farmers of Haryana," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 16(2), pages 286-316, June.
    • Handle: RePEc:vrs:ecoreg:v:16:y:2023:i:2:p:286-316:n:6
    DOI: 10.2478/ers-2023-0019
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    References listed on IDEAS

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    1. Jakhar, Babloo & Siwach, Manoj & Kait Rohtas, 2022. "Indebtedness: Field Notes on Farmers from Haryana, India," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 329867, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    2. Jakhar, Babloo & Kait, Rohtas & Kumar, Vijay, 2022. "Farmers Perception On Causes And Consequences Of Their Indebtedness In Haryana, India," Economic and Regional Studies (Studia Ekonomiczne i Regionalne), John Paul II University of Applied Sciences in Biala Podlaska, vol. 15(1), March.
    3. Singh, Sukhpal & Bhogal, Shruti & Singh, Randeep, 2014. "Magnitude and Determinants of Indebtedness Among Farmers in Punjab," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 69(2), pages 1-14.
    4. Sidhu, R.S. & Gill, Sucha Singh, 2006. "Agricultural Credit and Indebtedness in India: Some Issues," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(1), pages 1-25.
    5. Jakhar, Babloo & Kait, Rohtas, 2021. "Indebtedness Among Farmers In Haryana State, India," Economic and Regional Studies (Studia Ekonomiczne i Regionalne), John Paul II University of Applied Sciences in Biala Podlaska, vol. 14(3), September.
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    More about this item

    Keywords

    indebtedness; loan utilisation; farmers; repayment behaviour;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights

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