Journal of Scientific Research and Reports

Agricultural credit plays a crucial role in enhancing farm productivity and ensuring sustainable livelihoods of farmers. The present study titled “Assessment of Borrower Characteristics and Loan Access Constraints among Agricultural Clients of Lead Banks in Pune District” was undertaken to analyze the personal, socio-economic, and psychological characteristics of agricultural loan borrowers, identify constraints faced in obtaining and repaying loans, and suggest measures for effective credit utilization. An ex post facto research design was adopted for the study. Primary data were collected through a structured interview schedule from 120 agricultural loan borrower farmers selected randomly from Baramati and Indapur tehsils of Pune district. The collected data were analyzed using frequency, % percentage, mean, standard deviation, and chi-square test.The findings revealed that the majority of respondents were middle-aged, educated up to primary level, possessed medium farming experience, semi-medium landholdings, and medium annual income. Most borrowers had easy access to credit facilities and availed short-term loans. Medium levels of social participation, extension contact, scientific orientation, and risk preference were predominant among the respondents. Chi-square analysis indicated that most of the socio-economic and psychological variables were significantly associated with credit utilization patterns, except age. Major constraints faced by borrowers included inadequate loan amount, lengthy loan procedures, high interest rates for delayed repayment, and extensive documentation. The study recommends timely disbursement of adequate credit, simplification of loan procedures, reduction in interest rates, and extension of repayment periods to improve effective credit utilization among farmers.