Asian Journal of Agricultural Extension, Economics & Sociology

An efficient and effective rural credit delivery system is imperative for providing timely, adequate, and equitable access to credit for raising agricultural productivity and income. Equitable access to institutional credit is important in this context of relative scarcity of credit and the high cost of informal credit. The research specifically investigates the evolving landscape of agricultural credit in India by conducting a comparative analysis between two National Sample Survey Office (NSSO) rounds - the 70th round (2012-13) and the 77th round (2018-19). Through this temporal comparison, the study explores both the structural changes in credit accessibility and the persistent socio-economic disparities in institutional credit access. Employing multivariate logistic regression analysis, the research identifies various determinants influencing credit accessibility and quantifies existing inequalities. The findings reveal a significant correlation between socio-economic status and institutional credit access, with deprived populations facing considerable barriers in accessing formal credit channels. Consequently, these marginalized groups continue to rely heavily on informal credit sources to meet their financial requirements. The analysis highlights multiple socio-economic and demographic variables that substantially impact credit accessibility patterns across India. The study's findings underscore the urgent need for more precisely targeted and inclusive policy interventions. The research suggests that existing credit delivery mechanisms require substantial refinement to effectively reach and serve populations at the grassroots level. This comprehensive analysis contributes to the broader discourse on financial inclusion and agricultural development by providing empirical evidence of persistent inequalities in credit access, while simultaneously highlighting the necessity for policy reforms to address these systemic disparities in India's rural credit landscape. This study recommends to prioritize financial literacy and deployment of special credit facilities to address the barrier of institutional access to credit among marginalised section of society.