Factors Affecting Non-Repayment of Agricultural Loan: A Case Study of Rajasthan Marudhara Gramin Bank

Abstract

This study investigated the different factors influencing the repayment of agricultural credit in Jobner branch of Rajasthan Marudhara Gramin Bank. For this purpose, purposive sampling was adopted and 50 borrowers were selected from the list of defaulter borrowers from the branch. Through the pre-tested schedules, necessary informations were collected from the defaulters as well as from the bank employees regarding actual causes behind overdues. Finally data were summarized using descriptive statistics. Results of study show that low income generated by the use of loan, high living expenditure, large amount of expenditure on social and other religious activities, higher interest rate and low and unremunerated prices of farm produce etc. caused delay in repayment of agricultural loan.