“Barriers to Effective Agricultural Credit Delivery: A Study of Public Sector Banks in Haryana”

Abstract

This study examines the barriers affecting the effective delivery of agricultural credit by public sector banks in Haryana and their implications for agricultural development. Agriculture, being a critical sector of the Indian economy, relies heavily on timely and adequate access to institutional credit for sustaining productivity and ensuring farmers’ income stability. Despite various government initiatives and financial inclusion programs, several operational and structural challenges continue to hinder the accessibility and efficiency of agricultural credit. The study adopts a quantitative research approach based on primary data collected from 588 farmers through a structured questionnaire. Statistical tools, including descriptive analysis and multiple regression, are employed to identify key factors influencing credit delivery. The findings reveal that documentation delays, loan processing time, collateral requirements, awareness gaps, and high interest rates are the most significant constraints affecting farmers’ access to credit. The regression results further indicate that these variables collectively explain a substantial proportion of the variation in agricultural development outcomes. The study concludes that while public sector banks play a crucial role in agricultural financing, their effectiveness is limited by procedural inefficiencies and inadequate support systems. It suggests the need for simplifying processes, improving awareness programs, enhancing institutional responsiveness, and leveraging technology to strengthen credit delivery mechanisms and promote sustainable agricultural development in Haryana.