Non-KCC institutional loans among marginal farmers in Haryana: A comparative study of eastern and western agro-climatic zones

This study examines the nature, extent, and correlates of non-Kisan Credit Card (non-KCC) institutional loans availed by marginal farmers in Haryana. Using primary data collected from 320 marginal farmers across the Eastern (wet) and Western (dry) agro-climatic zones, it analyzes the loan types, sources, amounts, interest rates, repayment patterns, and socio-economic determinants. The study finds that while commercial banks dominate as lenders, socio-economic variables such as education, income, landholding, and mass media exposure significantly affect the amount of loan availed. The findings reveal that commercial banks are the dominant lenders, accounting for 67.17% of non-KCC loans, with their share significantly higher in the Eastern zone (75.47%) than in the Western zone (57.61%). Short-term loans constituted the majority at 71.21%, with the Eastern zone showing a higher preference for such loans (72.64%) than the Western zone (69.56%). In contrast, medium and long-term loans had greater prevalence in the Western region, suggesting a need for asset creation and income diversion. Findings contribute to the data base on rural credit by highlighting disparities in credit access and repayment behavior in different agro-climatic contexts.