Not AvailableThe study has examined the trend of formal credit growth and its influence on rural transformation in
terms of accelerating growth in household income levels. It has also identified the factors influencing the
access to formal agricultural credit in the study regions, viz. eastern and semi-arid tropics (SAT) of India.
The longitudinal household level data of about 1200 households in three states each in these two regions
have been analysed for the period 2010 to 2013. The study has observed that the poor access to formal
credit has compelled these households to take loan from informal sources who sometimes charge interest
@ 60 to 120 per cent per annum, threatening the livelihoods of these smallholders and poor households.
During the study period of three years (2010 - 2013), no change in situation was visible in these villages
and the access to formal sources of agricultural credit seems to remain truncated. The main reasons for
this disturbing trend is the lack of institutional framework to provide cheap and subsidized credit to these
marginal and landless households, who take land on lease for cultivation. The Tobit model has been fitted
to determine the accessibility to formal agricultural credit in these regions. The study has highlighted the
need of building a strong and inclusive financial infrastructure to provide necessary credit supportNot Availabl
