STUDY ON UTILIZATION OF AGRICULTURE CROP LOAN BY FARMERS OF KALABURAGI DISTRICT

Abstract

Agriculture continues to be the backbone of the rural economy in India, and access to timely and adequate credit plays a vital role in enhancing farm productivity and ensuring the socio-economic welfare of farmers. This study entitled “Utilization of Crop Loan by Farmers of Kalaburagi District” aims to analyse the extent and pattern of crop loan utilization among farmers, identify the purposes for which loans are actually used, and assess the socio-economic and institutional factors influencing their effective utilization.

Primary data were collected from a representative sample of farmers across selected villages in Kalaburagi district through structured questionnaires and personal interviews. Secondary data from financial institutions and government reports were also incorporated. The study reveals that while a majority of farmers availed crop loans primarily for the purchase of inputs such as seeds, fertilizers, and pesticides, a considerable portion of the loan amount was often diverted to non-agricultural purposes like social ceremonies, debt repayment, and household expenses. Factors such as landholding size, education level, access to extension services, and institutional guidance significantly affected the productive use of loans.