Borrowing Behaviour of Financially Excluded - a Step Forward in Financial Inclusion: An Assesment

Abstract

Significance of financial inclusion arises from the problem of financial exclusion of nearly 3 billion people from the formal financial services across the world. The primary aim of the paper is to study the pattern of household borrowing in Villages. 100 farmers who were selected randomly from 3 villages of Dhabla block of Ujjain district. The study goals is to find out the socio-economic summary of the sample borrower selected (farmers), their utilization pattern of credit and finally the borrowing sources.

The assesment establishes that farmers with less landholding have less access to formal sources of credit (Banks), and they are also charged high interest rate by Moneylender i.e, Informal sources and shows that farmers land holding, purpose of loan and Repayment plan are important factors in determining the sources of loan.