A STUDY ON LOAN SIZE AND REPAYMENT RATES AMONG AGRICULTURAL BORROWERS OF MICROFINANCE WITH SPECIAL REFERENCE TO PALLADAM TALUK

Abstract

The poor and small scale farmers are usually excluded from credit facilities because of many reasons which include insufficient collateral, lower literacy rate and irregular income etc. Microfinance helps the small scale farmers to be involved in agricultural production that allow them to accumulate capital and improve their standard of living. Repayment problem is an obstacle to the Microfinance Institutions that offer microfinance based on group lending approach to provide credit to small scale framers. Therefore, this research was tries to determine the loan size and default rates among women agricultural borrowers in Palladam Taluk. The data collected were analyzed through the use of Descriptive analysis and Analysis of Variance. The results show that banks distributed different size of loans to women farmers and those farmers enhanced their standard of living by microfinance loan. This implies that microfinance produce positive and significant contribution to the development of agriculture.