scholarly journals Credit for Rural Poor in Pakistan

1995 ◽  
Vol 34 (4II) ◽  
pp. 769-778
Author(s):  
Sarfraz Khan Qureshi
Keyword(s):  
Interest Rates ◽  
Rural Areas ◽  
Financial Services ◽  
Local Level ◽  
Green Revolution ◽  
Adverse Side Effect ◽  
Rural Poor ◽  
Rural Credit ◽  
Interest Policy ◽  
Credit Institutions

Farmers, large and small, and the non-farm population in rural areas all suffer from the liquidity constraint. Credit is needed to acquire command over the use of working capital, fixed capital, and consumption goods. The Green Revolution technologies have increased the credit requirement for modern inputs and farm investment. A new expanded role of rural credit institutions has emerged in the wake of the technology revol~tion in rural areas. Two distinct approaches have been used to provide the financial services to the rural poor. The most widely favoured approach in the past was the use of subsidised interest rates with a portion of credit reserved for the poor. The low interest policy was based on the premise that it would induce farmers, large and small, to use modern' inputs on a larger scale. One of the adverse side-effect of this policy was the introduction of an element of financial unsustainability in the loan portfolios of the credit institutions. The recent view about the delivery of rural credit consists of using market interest rates and using a mixture of 'bottom-up initiatives' at the local level, using non-government groups and 'top-down initiatives' by the formal credit institutions in terms of the simplification of the procedures and decentralisation of the credit operation for credit supply to the rural poor. In this paper, an attempt is made to evaluate the efficacy of these two approaches in the case of Pakistan for delivering credit to the rural poor.

scholarly journals The value of in-person banking: evidence from U.S. small businesses

2021 ◽  
Author(s):  
Song Zhang ◽  
Liang Han ◽  
Konstantinos Kallias ◽  
Antonios Kallias
Keyword(s):  
Interest Rates ◽  
Interpersonal Communication ◽  
Rural Areas ◽  
Financial Services ◽  
Small Businesses ◽  
Business Owners ◽  
Soft Information ◽  
Face To Face ◽  
Treatment Effect Models ◽  
The U.S

AbstractWe produce the first systematic study of the determinants and implications of in-person banking. Using survey data from the U.S., we show that firms which are informationally opaque or operate in rural areas are liable to contact their primary bank in-person. This tendency extends to older, less educated, and female business owners. We find that a relationship based on face-to-face communication, on average, lasts 17.88 months longer, spans a wider range of financial services, and is more likely to be exclusive. The associated loans mature 3.37 months later and bear interest rates which are 11 basis points lower. For good quality firms, in-person communication also relates to less discouraged borrowing. These results are robust to multiple approaches for endogeneity, including recursive bivariate probits, treatment effect models, and instrumental variables regressions. Overall, our findings offer empirical grounding to soft information theory and a note of caution to banks against suppressing channels of interpersonal communication.

scholarly journals Rural Credit and Rural Development: Some Issues

1984 ◽  
Vol 23 (2-3) ◽  
pp. 273-285
Author(s):  
Sarfraz K. Qureshi ◽  
Kalbe Abbas ◽  
Ahmed Naeem Siddiqui ◽  
Ejaz Ghani
Keyword(s):  
Rural Areas ◽  
Green Revolution ◽  
Policy Instrument ◽  
Rapid Expansion ◽  
Working Capital ◽  
Occupational Groups ◽  
Policy Makers ◽  
Access To Credit ◽  
Rural Credit ◽  
Rural Income

Credit is an important instrument of acquiring command over the use of working capital, fixed capital and consumption goods. In the wake of Green Revolution, land and labour have receded into the background as predominant factors of growth. Use of capital and adoption of modern techniques of production which have become major sources of growth of agricultural output necessitate access to credit markets for financing their use. Institutional sources of credit have become quite significant during the last few years. The rapid expansion of credit from institutional sources can be seen from various indicators. The total disbursement of agricultural loans has gone up from Rs. 306.75 million in 1972-73 to Rs. 5,102.14 million in 1981-82. On a per acre basis, the loans increased from Rs. 7.33 in 1972-73 to Rs. 106.83 in 1981-82. In this perspective, the disparities in income and wealth in rural areas would crucially depend on the distribution of capital among farms of different sizes and occupational groups. Neglecting equitable distribution of credit as a policy instrument for rural income redistribution may be a serious omission by the policy makers interested in an improvement of rural equity.

Farmers' preferences and willingness to pay for microcredit in Benin: results from in-the-field choice experiments in Benin

2020 ◽  
Vol 80 (5) ◽  
pp. 665-692 ◽  
Author(s):  
Tchekpo Fortune Ogouvide ◽  
Ygue Patrice Adegbola ◽  
Roch Cedrique Zossou ◽  
Afio Zannou ◽  
Gauthier Biaou
Keyword(s):  
Willingness To Pay ◽  
Interest Rates ◽  
Rural Areas ◽  
Financial Services ◽  
Poverty Reduction ◽  
Latent Class ◽  
Microfinance Institutions ◽  
Choice Modelling ◽  
Attribute Importance ◽  
Content Type

PurposeThis document analyses farmers' preferences and willingness to pay (CAP) for microcredit, in order to facilitate their access in rural areas.Design/methodology/approachData are based on a discrete choice experiment with 400 randomly selected farmers from 20 villages of the 7 Benin agricultural development hubs (ADHs). The preference choice modelling was performed using mixed logit (MXL) and latent class logit (LCL) models. Farmers' willingness to pay for each preferred attribute was estimated. The endogenous attribute attendance (EAA) model was also used to capture attribute non-attendance (ANA) phenomenon.FindingsThe results indicate that, on average, farmers prefer individual loans, low interest rates, in kind + cash loans, cash loans, disbursement before planting and loans with at least 10-month duration. These preferences vary according to farmers' classes. Farmers are willing to pay higher or lower interest rates depending on attribute importance. The estimate of the EAA model indicates that, when taking the ANA phenomenon into consideration, people will show stronger attitudes regarding WTP for important factors.Research limitations/implicationsBased on these results from Benin, microfinance institutions (MFIs) in developing countries can, based on the interest rates currently charged, attract more farmers as customers, reviewing the combination of the levels of the attributes associated with the nature of the loan, the type of loan (individual or collective), the disbursement period of funds, the waiting period of the loan and the loan duration. However, the study only considered production credit, ignoring equipment or investment credit.Practical implicationsThe document provides information on the key factors that can facilitate producers' access to MFI products and services.Social implicationsFacilitating small farmers' access to financial service will contribute to poverty reduction.Originality/valueThis research contributes to the knowledge of the attributes and attribute levels favoured by farmers when choosing financial products and the amounts they agree to pay for these attributes. The implementation of the results would facilitate small producers' access to financial services; thus contributing to poverty reduction.

scholarly journals Socio-Economic Analysis of Effectiveness of Implementation of an Employment Guarantee Scheme at Local Level: A Study of a Village in India

2020 ◽  
Vol 4 (2) ◽  
pp. 23-30
Author(s):  
Sanjeet Mahapatra ◽  
Anand Pandey ◽  
Badri Narayanan
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Rural Population ◽  
Social Protection ◽  
Local Level ◽  
Uttar Pradesh ◽  
Primary Data ◽  
Wage Policy ◽  
Wage Payment ◽  
Scientific Papers

The main purpose of the study is to develop theoretical and practical principles for analyzing the economic efficiency of the program to guarantee employment in rural areas in India. This program of support and active promotion of employment of the rural population is the result of the adoption of the Law on Guarantees of Employment in Rural Areas. The relevance of the choice of this scientific problem is that most scientific papers focus on assessing the effectiveness of the implementation of this legal act at the macro level, while the article analyzes this issue at the level of a particular locality. The object of the study was the village of Sanatpur in Uttar Pradesh, India. The study conducted a survey of participants in the program to guarantee employment in this rural area, which served as a basis for primary data, as well as used official statistics on the implementation of this program in the country. Descriptive statistics methods were used to analyze the effectiveness of the program to guarantee employment in rural areas. The article analyzes the mechanism of implementation of the program to guarantee employment in rural areas, namely the peculiarities of job creation in rural areas, the formation of wage policy, as well as the payment of wages to local residents. The field study identified key difficulties in implementing the above program: insufficient awareness of villagers about the opportunities and benefits of participating in the approved employment support program, as well as low access to basic financial services and lack of almost 70% of the rural population individual bank accounts. The results of the study can be useful for local and national governments in the field of social protection and social security. Keywords: decentralized planning, wage payment, job guarantee.

scholarly journals Performance Evaluation of Karnataka Vikas Grameena Bank towards Priority Sector Lending in Karnataka

2016 ◽  
Vol 4 (2) ◽  
pp. 303
Author(s):  
Y. G. Baligatti ◽  
Shilpa Danappanavar
Keyword(s):  
Performance Evaluation ◽  
Financial Institutions ◽  
Rural Areas ◽  
Rural Poor ◽  
Rural Credit ◽  
Agriculture Sector ◽  
Set Up ◽  
The One ◽  
Economic Improvement

<div><p><em>Rural Banking in India refers to a set up of financial institutions for the economic improvement of rural poor in rural areas. The Karnataka Vikas Grameena Bank is the one of the leading RRBs in Karnataka and has occupied an unique place in the multiagency approach applied to provide agricultural and rural credit in rural areas of Karnataka. </em><em>The KVG Bank has the front runner in catering to the needs of the farmers, traders, rural artisans, Professionals, self-employed, contractors and all other sections of the society.</em></p><p><em>In this paper an attempt is made to evaluate the role of the Karnataka Vikas Grameena Bank towards priority sector lending in Karnataka, through the parameters like disbursement of loan to various priority sectors like Agriculture, allied Activities, SSI units and Trade or Services. The study reported that,</em> <em>the KVG Bank has provided highest loan to agriculture as compare to other sector of the rural area and playing the significant role towards the development of agriculture sector. Further it is noted that the priority sector advances of the bank to allied activities is insignificant reflecting its utter negligence of allied activities.</em></p></div>

Exploring the Role of Microfinance in Emerging Nations

2021 ◽  
pp. 249-268
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Health Care ◽  
Interest Rates ◽  
Financial Institutions ◽  
Financial Services ◽  
Financial Resources ◽  
Rural Poor ◽  
Microfinance Institutions ◽  
Emerging Nations ◽  
Poor Households

This chapter explains the overview of microfinance; the efficiency of microfinance institutions (MFIs) and sustainability; microfinance and interest rates; microfinance and information technology (IT); microfinance, social capital, trust, and repayment rates; microfinance and health care; informal microfinance institutions (IMFIs) and tourism entrepreneurship; and the importance of microfinance in emerging nations. Financial services provide a method for people and businesses to obtain credit and manage available assets on a continuous basis. Microfinance has a significant role in bridging the gap between formal financial institutions and rural poor households. MFIs can access financial resources from banks and other financial institutions and provide financial services to poor households. The chapter argues that promoting microfinance has the potential to enhance financial performance and reach economic goals in emerging nations.

PERFORMANCE APPRAISAL OF KASHI GOMTI SAMYUT GRAMIN BANK : WITH SPECIAL REFERENCE TO EASTERN U.P.

2016 ◽  
Vol 12 (1) ◽  
Author(s):  
Kishan Jee ◽  
Atishayendra Kaushal
Keyword(s):  
Performance Appraisal ◽  
Rural Areas ◽  
Financial Services ◽  
Urban Areas ◽  
New Technology ◽  
Local Level ◽  
Uttar Pradesh ◽  
Service Industries ◽  
Indian State ◽  
The Republic

Kashi Gomti Samyut Gramin Bank is a rural bank of Eastern UP. Rural Bank is a local level banking organizations which operates in different states of India. RRBs had been constituted with a view to serve basic banking and financial services in the rural areas. It mobilizes financial resources from rural / semi-urban areas and provides loans and advances primarily to small and marginal farmers, agricultural labourers, and rural artisans. It is also worked as variety of different functions as an agent like carrying out government operations related to disbursement of wages of MGNREGA workers, distribution of pensions, locker facilities, debit and credit cards facilities etc. Uttar Pradesh is the most populous state in the Republic of India as well as the most populous country subdivision in the world. It covers 243,290 square kilometers (93,933 sq mi), equal to 6.88% of the total areas of India, and is the fourth largest Indian state by area and the third largest Indian state by economy, with a GDP of ?9,763 billion (US$150 billion). Agriculture and service industries are the largest parts of the state's economy. More than 60 percent population's livelihood is based on agriculture. Due to non availibity of banking facilities, they could not maintain qualities and quantities of food grains production; adaptation of new technology and also compensation of natural calamities losses. KGSG bank established in UP's main rural bank to solve the problems of rural. This study has been attempted an appraisal of the performance of KGSG bank in esteem of Period-wise Deposit and Advance Growth, Analysis of Income, Analysis of Expenditure and Analysis of Profitability etc.

Exploring the Role of Microfinance in Emerging Nations

2017 ◽  
pp. 174-193
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Health Care ◽  
Interest Rates ◽  
Financial Institutions ◽  
Financial Services ◽  
Financial Resources ◽  
Rural Poor ◽  
Microfinance Institutions ◽  
Emerging Nations ◽  
Poor Households

This chapter explains the overview of microfinance; the efficiency of microfinance institutions (MFIs) and sustainability; microfinance and interest rates; microfinance and information technology (IT); microfinance, social capital, trust, and repayment rates; microfinance and health care; informal microfinance institutions (IMFIs) and tourism entrepreneurship; and the importance of microfinance in emerging nations. Financial services provide a method for people and businesses to obtain credit and manage available assets on a continuous basis. Microfinance has a significant role in bridging the gap between formal financial institutions and rural poor households. MFIs can access financial resources from banks and other financial institutions and provide financial services to poor households. The chapter argues that promoting microfinance has the potential to enhance financial performance and reach economic goals in emerging nations.

Micro Finance in Sustainable Development: A Descriptive Study on Indian Experience

2011 ◽  
pp. 72-88
Author(s):  
Ananda . S.
Keyword(s):  
Sustainable Development ◽  
Financial Services ◽  
Local Level ◽  
Rural Poverty ◽  
Peer Pressure ◽  
Poor People ◽  
Rural Poor ◽  
Self Help ◽  
The Poor ◽  
Micro Credit

Micro-Finance in India is emerging as an effective instrument for poverty allevi- ation, women empowerment and sustainable development. In India, Non- Governmental Organization (NGO) led micro credit is proved as an effective and financially viable alternative to address rural poverty through the provision of cred- it without collateral, unleashing human creativity and endeavor of the poor people. Micro finance institutions are operating through banks linkage program aimed at providing a cost effective mechanism for providing financial services to the ‘unreached poor’. Banks lend micro-credit through Self-Help Groups (SHGs) and to local Micro-Finance Institutions (MFIs) based on the philosophy of peer pressure and group savings as collateral substitute. In India, the micro-Finance concept has been successful in not only designing financial products meeting needs of the rural poor, but also in strengthening collective self-help capacities of the poor at the local level, leading to their empowerment. At macro level, the self help group is a useful instrument for savings mobilization and enhancing access to credit for the rural, unreached poor for their productive investment. In this paper an attempt has been made to describe how micro credit is effective and financial viable method of addressing sustainable rural development through provision of micro credit to rural poor for productive activities.

An Analysis of Restraints on Effective Demand for Loans in Rural China

2018 ◽  
Vol 6 (8) ◽  
pp. 107
Author(s):  
Wenjie Ma ◽  
Minxin He ◽  
Xinyu Zhong ◽  
Shengsong Huang
Keyword(s):  
Economic Growth ◽  
Migrant Workers ◽  
Rural Areas ◽  
Financial Services ◽  
Rural China ◽  
Strong Support ◽  
Effective Demand ◽  
Second Child ◽  
Factors Influencing ◽  
First Choice

China’s overall economic growth is, to a great extent, hindered by the lack of economic growth in rural areas. Based on data from the Thousand-Village Survey (2015) of 31 provinces conducted by Shanghai University of Finance and Economics, we conduct this empirical study to analyze the current state of rural financial services and the factors influencing effective demand for loans in rural China. Looking at the demand side, in 2014, only 13.91% farmers had loans, and only 15.53% of them made financial institutions their first choice when they needed loans. Clearly, there is still much to do with regard to inclusive finance. From the perspective of the supply side, only 43.86% of dispersed loans can be categorized as productive loans, further reflecting that the financial services industry does not provide strong support for rural economic growth. Further study shows that the main factors influencing effective demand for productive loans are the population age structure and the rate at which migrant workers return home. Therefore, the "Second-Child" policy and policies that encourage migrant workers to go back home to start businesses are of vital importance in order to raise effective financial demand in rural China.

Sign in / Sign up

Export Citation Format

Share Document