An Analysis on Supply and Utilisation of Agricultural Finance in Dindigul District With Special Reference to Selected Areas

Abstract

The purpose of this paper is to discuss the availability and use of agricultural credit loans in Dindigul district’s selected areas. This study used primary data on agricultural credit loans in a particular region. This study used correlation and regression tools. This finding demonstrates that agriculturists are forced to accept short-term loans from commercial banks to purchase agricultural tools and inputs, as well as farming operations, the benefits of which cannot be realised within the loan’s duration. The backlog in installment payback imposed pressure on later operations and limited repayment options. The situation is more serious in the areas. Agricultural credit is provided at a reduced rate as a matter of priority. It should not be used for anything other than agricultural purposes. The researcher has previously demonstrated that agricultural finance has a good impact on farming. This study attempted to explain that agricultural financing has a positive and significant impact on agriculture using correlation and regression models. The result of farming is quantified in terms of income generated from agriculture, which greatly increases agricultural credit loans among farmers in commercial banks.