Loan repayment behavior of beneficiary farmers in primary agricultural cooperative societies in Haryana (India)

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Abstract
Subject and purpose of work: The study examined the loan repayment behavior of beneficiary farmers in Primary Agricultural Cooperative Societies in the State of Haryana, India. Material and methods: The findings were based on primary as well as secondary data. The secondary data was collected for the period of 2006-2007 to 2018-2019. The primary data was collected in the second quarter of 2022. Results: The study concluded that year-wise the maximum percentage of defaulter farmers was 34.97% in 2008-2009 due to the debt relief scheme announced by the Government of India in 2008. Furthermore, it revealed that about 75% of beneficiary farmers repaid their loans regularly after receiving the benefit of interest subvention at 7% by the government of India and the state government. The findings on primary data concluded that most farmers have been repaying their loans regularly, and less than 10% of beneficiary farmers defaulted. The main reason for the default was a loan without security and the anticipation of a loan waive-off scheme. About 19% of beneficiary farmers have been repaying their loans irregularly due to the short time within which loan repayments needed to be made. Conclusions: The short time of loan repayment is the main cause of irregular loan repayment behavior. The period of repayment of loans should be extended for one year and it should be considered from the loan issuance date.

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