Rural Credit to Farmers in Kasaragod District and its Effectiveness

Abstract: 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