PEARL Multidisciplinary Journal

Rural Credit to Farmers in Kasaragod District and its Effectiveness


 Credit is essential for rural development, especially for farming sector.  Financial  requirements  of  the  farming  sector  have  increased tremendously over the last few decades due to the extended use of fertilizers, improved seeds and mechanization.  Credit flows for rural economic development initially  made  through cooperative societies  have contributed much  to  the improvement of  the  financial condition  of  agriculture  and  rural  economy. Institutional credit has been viewed as an important instrument for serving rural development especially in the agricultural sector. The role of banking institution in rural development in India has undergone vast changes since the nationalization of major commercial banks. The study evaluated the economic effectiveness of rural credit among farmers in Kasaragod district. The analysis on agricultural production, income, standard of living, saving and investment of farmers before and after credit revealed the effectiveness of rural credit. The result shows that rural credit influenced agricultural production level, income, standard of living and saving of farmers effectively. 



Rural Credit, Farmers, Effectiveness, Kasaragod.

Author Affiliations

Karunakaran N*, Vaishnavi V*

Department of Economics, EKNM Government College Elerithattu, Nileshwar, Kasaragod, Kerala, India


August 2020

Volume 6

No 2