Jun 2026· Afghan International Journal of Science· Vol 2, pp. 144-162· 0 citations· 36 references
Abstract
Agricultural credit plays a critical role in enhancing farm productivity and sustaining rural livelihoods in developing economies characterized by capital-constrained smallholders. This study examines farmers' credit demand, its structure, and the barriers affecting access to formal financial services. Primary data were collected through a structured questionnaire administered to 240 farmers across ten districts of Nangarhar Province. Descriptive statistics, Likert-scale analysis, and cross-tabulations were used to analyze credit demand and utilization. The results revealed that 90.42% of surveyed farmers expressed a demand for agricultural credit, with 40.0% reporting a very high level of demand, while 62.5% of respondents identified government sources as their preferred source of credit. However, only 11.3% of respondents were aware of formal credit programs. Collateral availability emerged as a significant barrier, as only 38% of households possessed formal land documentation. Farmers primarily demanded small-ticket loans: 79.73% of respondents reported a credit demand of less than AFN 200,000 for seasonal input purchases. In addition, farmers showed a strong preference for installment-based and seasonal repayment schedules. These findings highlight a structural paradox: while farmers recognize the importance of credit for improving agricultural productivity, institutional barriers continue to limit access to formal financial systems. Policy recommendations include expanding financial services, strengthening awareness campaigns, introducing alternative collateral mechanisms, aligning repayment schedules with agricultural cycles, and linking credit provision with extension services. The study provides actionable insights for policymakers and financial institutions seeking to design inclusive and accessible credit schemes tailored to the needs of smallholder farmers in Nangarhar Province.
Agriculture remains one of the key sectors in Nepal's economy. However, many farmers struggle to access formal credit to enhance their farm productivity and sustainability. This study assessed farmers’ access to formal credit in Kathmandu Valley and identified the main barriers limiting its use. A sample of 105 farmers from Kathmandu, Bhaktapur, and Lalitpur districts was selected using stratified sampling, based on the proportion of farmers in each district. Data were collected using structured questionnaires. The analysis was conducted using descriptive statistics. The results showed that although 70% of the farmers reported awareness of formal credit institutions, only 27% of them had successfully accessed credit. Among those who accessed credit, most relied on commercial banks and cooperatives with little assistance during the application process. The most significant barriers were long processing times and strict collateral requirements, while high interest was surprisingly not seen as a major issue, possibly due to more pressing concerns. The findings highlight the need to simplify credit procedures, reduce collateral requirements, and provide better guidance and awareness programs for farmers. Addressing these issues is essential for improving financial inclusion and supporting the agricultural sector in Kathmandu Valley.
Brishti Suwal, Rojan Karki· Nepalese Journal of Agricult...· 0 citations
Credit access is a critical enabler of livelihood diversification among rural households, particularly in resource-constrained and climate-vulnerable regions like northern Nigeria. This study examined the extent of credit access, major constraints, and their influence on livelihood diversification among 450 smallholder farmers in Kano State, Nigeria. Data were collected through a multistage sampling procedure and analyzed using descriptive statistics, binary logit regression, and the Simpson Diversification Index. Results revealed that respondents were predominantly male (81.1%), married, and middle-aged, with small landholdings and low monthly incomes. Farming remained the dominant livelihood activity, supplemented by livestock, poultry, and petty trading. Formal credit access was limited (31.8%), with most households relying on informal sources such as friends and relatives. The primary constraints to diversification were limited access to credit, high startup costs, and high input prices. Binary logit and other regression analyses confirmed that financial exclusion significantly hinders diversification efforts. The study concludes that financial exclusion remains the main structural barrier to livelihood diversification. It recommends expanded rural credit delivery, reduced borrowing costs, strengthened cooperative financing, and enterprise support programs to enhance household resilience and welfare in Kano State.
F. Abdulwahab, S. Abdullahi, M. Garba et al.· African Journal of Sustainab...· 0 citations
This study assesses farmers' access to credit, their utilization patterns, and the impact on farm income. Data were collected in 2024 by interviewing 150 randomly selected farmers from Thakre rural municipality of Dhading and analyzed using descriptive statistics, an independent samples t-test, and a weighted priority index. About 67% of sampled households accessed credits, of which only 47% used the funds exclusively for agricultural activities. Of the 67% who borrowed, 44% accessed formal credit sources, implying that the remaining 56% relied entirely on informal channels. The independent t-test shows that credit receivers have a significantly higher annual farm income (NRs. 536,231/HH) than that of non-receivers (NRs. 372,071/HH) at a highly significant level (p = 0.0001). Easier access to formal credit will substitute costly informal credit to enhance farm productivity and income. Therefore, implementing effective regulatory frameworks and strict monitoring is crucial to remove structural and procedural barriers, thereby enhancing proper credit access and utilization.
H. K. Panta, Niruta Shrestha, R. B. Shrestha et al.· Journal of Agriculture and E...· 0 citations
This study examines how rural finance has shaped agribusiness development in India, with emphasis on the transition from informal lending to a diversified institutional credit system. Using secondary data from official reports, surveys, and scholarly sources, the analysis reviews long-term trends in agricultural credit, agency-wise disbursement, regional distribution, and the relative roles of commercial banks, Regional Rural Banks, cooperative institutions, and NABARD. The findings indicate that institutional credit has expanded markedly and has supported investment in farm inputs, technology, irrigation, post-harvest infrastructure, and risk-management mechanisms. Commercial banks have become the principal providers of agricultural credit, while Regional Rural Banks and cooperatives continue to perform important financial inclusion functions. However, the expansion of formal lending remains uneven. Small and marginal farmers face constraints related to collateral, documentation, procedural complexity, and limited local outreach, while the eastern and north-eastern regions receive comparatively lower levels of credit. Continued reliance on informal lenders, insufficient medium- and long-term finance, and uneven loan amounts further limit the contribution of credit to sustainable agribusiness growth. The study identifies digital integration, region-specific policies, stronger cooperative networks, financial education, public-private collaboration, and improved alignment of credit products with agricultural cash-flow cycles as key pathways for strengthening rural finance. A more inclusive, transparent, and farmer-oriented credit system is required to support resilient and sustainable agribusiness development across India.
Vidyawati, R. Jadoun, Saurabh Singh· Journal of basic and applied...· 0 citations
Institutional agricultural credit enhances farm productivity; however, its impact depends on how effectively borrowed funds are utilised. The study examined the sources, extent, utilisation behaviour, and determinants of credit use among 120 farmers (254 loan accounts) selected through multistage random sampling in Bagalkot district, Karnataka, during 2024–25, using descriptive statistics, the Gini coefficient, one-way ANOVA, Garrett ranking, and a binary logit model. Commercial banks dominated credit supply (60.86 per cent), followed by PACS (33.97 per cent), with large farmers receiving 42.52 per cent. Although 78.85 per cent of the credit was used productively, only 25 per cent of farmers utilised it as intended, with significant variation by farm size. Non-farm income and credit amount significantly improved the proper utilisation. Promoting non-farm incomes, strengthening guidance on extension-linked credit, and aligning loan sizes with genuine credit requirements would improve utilisation.
Keywords
Agricultural finance, farm investment, income diversification, rural households.
JEL Codes
G21, Q12, Q14.
Nikhil Govind Malali· Indian Journal of Economics...· 0 citations
The agricultural industry employs more than 65% of Tanzanian workers and has a major economic impact. This study assesses the variables affecting small farmers' access to and utilisation of loans in Tanzania's Dodoma region. Additionally, the study uses a mixed research approach to integrate or combine qualitative and quantitative data. The research used a cross-sectional survey research methodology. The total number of grape growers in the sample was 342. For the inquiry, primary data was selected. The research discovered that Tanzanian farmers' utilization to funding is affected by bank interest rates, terms of payment, age, and education. The study recommends that development banks collaborate with the government, take the time to fully comprehend the macroeconomics of the nation in which they operate, control operating costs, and establish a stable source of income in order to successfully extend credit to underfinanced areas or sectors where other commercial banks would not.
James Chindengwike· JALOW | Journal of Agribusin...· 0 citations
