Socio-Economic Determinants of Access to Institutional Credit among Marginal and Small Farmers in Cachar District of Assam: An Econometric Analysis
Inadequate access to formal agricultural credit constrains rural financial obligations and reduces productivity among India's small and marginal farmers. This study explores the socio-economic status, population, and access to institutional credit and approval, using primary data collected from 300 households across five development blocks for small and marginal farmers in the Cachar district of Assam. Using econometric tools, we identify the factors that persuade credit supply to marginal and small farmers. The survey uses a binary logistic regression model to investigate the influence of selected socioeconomic characteristics on access to credit. The findings reveal that the education level of the household head has a consequential, positive, data-driven effect on the prospect of utilising institutional credit. In contrast, income, occupation, housing condition, and farmer type are not abundant determinants. The model illustrates an acceptable goodness-of-fit. The study culminates the primary roles of education and financial competence in strengthening rural financial inclusion and offers policy-relevant insights to strengthen the effectiveness of institutional credit delivery mechanisms.