A Study of Various Constraints Regarding Credit Utilization in Jaunpur District of Uttar Pradesh

Background: Credit is the crucial input for the economic development of the farmers as it helps in increased production through use of modern inputs. The study was carried out to examine the various constraints faced by the different groups of farmers in the Jaunpur district in regards to credit utilization.

Aims: To study the various constraints regarding credit utilization and credit acquisition by the borrowers

Place and Duration of Study: Jaunpur district of Uttar Pradesh, between year 2020 and 2021.

Methodology: A total of 120 respondents were selected randomly from the Karanzakala block of Jaunpur district, Uttar Pradesh and a pre-structured questionnaire was used to collect the data from the farmers. Respondents were classified into two categories and 60 respondents from borrowers and 60 from non-borrowers were selected for study purpose

Results: It is revealed by the Garrett scores that maximum number of borrowers with 71.61 mean score reported that hectic documentation as main problem faced in acquiring the credit.

Conclusion: From the findings of the study, it has been stated that there was a high level of constraints associated with access to credit. Highly responded constraints for bank credit were hectic documentation (71.61 mean score), repayment period not being sufficient (68.25 mean score) and Insufficient loan amount (60.25 mean score) were the major constraints. Due to having these constraints, farmers faced a lot of troubles to get credit which hindered agricultural activities, increased cost of credit, led to selling of agricultural crops at low prices.