Cost of Borrowing and Financial Feasibility of Credit for Small and Marginal Farmers in District Lakhimpur Kheri, Uttar Pradesh Singh Mona1, Rai DP*,2, Singh KK1 1Division of Agronomy, Mahatma Gandhi Chitrakoot Gramodaya VishwavidyalayaChitrakoot, Satna485334Madhya Pradesh, India 2Faculty of Agriculture, Mahatma Gandhi Chitrakoot Gramodaya VishwavidyalayaChitrakoot, Satna485334Madhya Pradesh, India *Email for correspondence: chandra.drram@gmail.com
Online Published on 12 September, 2022. Abstract The study was conducted on the cost of borrowing and financial viability of credit for small and marginal farmers in the Lakhimpur Kheri district of Uttar Pradesh. The cost of borrowing of small and marginal farmers was very high and for them credit for productive purpose was financially unviable (return on credit being less than the cost of credit). Credit was studied for specified classes namely the small and marginal farmers, artisans etc in rural areas. Cost of borrowing included the interest paid by the farmers for credit as well as processing fee borne by them. The total cost of borrowing differed from what source the farmers had taken the credit. Interest paid by the farmers was always less for institutional sources as compared to non-institutional sources. Top Keywords Cost, Financial viability, Institutional sources, Non-institutional sources. Top |