SMALL FARMERS' BEHAVIOR ON MICRO CREDIT

Abstract

The purpose of the study was lo find out the credit need, credit uuhzauon and credit repayment behavior of I 00 randomly selected farmers of Askarpur, Sheikpura and Sankarpur union under the sadar upazila of Dinajpur distnct supervised by the Grarneen Bank Dinajpur zone. Among the borrowers, the highest portion (53%) of the respondents was below 35 year of age. Most of the respondents (48%) had Primary level of education. Moderately small farmers who have 0.41 ha to 0.5 ha land were the highest proportion (60%). Among the respondents 40% had the higher demand for credit in cereal crop cultivation (like rice, wheat, etc). Second highest of respondents was observed 39% who had demand for credit for Small business purpose. Most of the farmers (75 %) had in the group of Low credit need (up to tk 3699). In Agricultural sector 52.26 percent of total credit was utilized for crop cultivauon, 25 27 percent of total credit was utilized for Non-crop purpose. ln Non-agricultural sector, 14.66% of total credit was utilized for Family consumption and rest of 7.80% utilized for Other expanse. 80% of borrowers utilized the loan properly marks as the group of High utilization (above Tk 800 I). In all cases the loan recovery was I 00%. Two main factors, namely, Desire for getting new loans(56%) and Personal motivation (28%) induced the respondents to a great extent in repaying their loans lncase or receiving credit, among borrowers, 35% of borrowers expressed their problem as Unfavorable situation caused due to natural calamities or mishaps. And for utilizing the credit, among the borrower, 40% of borrowers expressed their problems as Lack of support on production technology and farm inputs The independent variables found significantly positive relation with dependent variables except Age with Credit repayment and Income with Credit need