National Academy of Agricultural Sciences (NAAS)
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PRINT ISSN : 2319-7692
Online ISSN : 2319-7706 Issues : 12 per year Publisher : Excellent Publishers Email : editorijcmas@gmail.com / submit@ijcmas.com Editor-in-chief: Dr.M.Prakash Index Copernicus ICV 2018: 95.39 NAAS RATING 2020: 5.38 |
Efficient utilization of credit and prompt repayment go hand in hand. If the credit is utilized properly then there is every possibility of having good returns, which in turn can help to repay the loan in time and timely repayment helps the borrower to get escape from the debt trap and acquire the benefit of interest subvention provided by the government. An endeavor is herein made to study the recovery performance of financial institutions which was designed through a random sample survey of hundred credit availed farmers in the diverse agriculture terrains of Nayagarh district and analyzed by descriptive statistics. Out of the hundred respondents twenty seven respondents are the defaulters. The Cooperatives have better recovery performance than commercial banks and RRBs. This non-repayment scenario is owing to lack of post disbursement following up. Most of the borrowers (seventy three per cent) fully repaid to build trustworthiness, to avail future loan and for non-repayment, some of the borrowers are willfull defaulters and some have genuine issue for being defaulters i.e. crop failure. Strictly assessing economic feasibility through credit worthiness tests i.e. 3Rs, 5Cs and 7Ps by the banker before credit disbursement may help to assure prompt repayment.
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