Year: 2026 | Month: June | Volume 71 | Issue 2
Socio-economic Profile and Determinants of Repayment Patterns of Kisan Credit Card Loans: Evidence from West Bengal
Dyuti Bhattacharya and Tulika Kumari
DOI:10.46852/0424-2513.2.2026.10
Abstract:
India, being an agrarian economy, is highly dependent of the development of the rural and agricultural sector for the overall development of the economy. This makes it the proper credit provision to these sectors the need of the hour. Kisan Credit Card scheme was brought as a need based credit delivery system which was modified many times by the RBO. Some of the major modifications include the addition of SHGs, JLGs, etc under this scheme, allowing credit disbursement to allied fields of agriculture such as dairy farming and so on. This study examines the socio-economic and financial impacts of Self-help Group (SHG) membership among farmers in the Nadia and East Burdwan districts of West Bengal. The socio-economic profile revealed that even though majority farmers were of small and marginal categories, SHG members did fare better than non-members. Repayment patterns and factors affecting were also examined and seen that SHG member farmers were on a better footing with timely repayments. Regression analysis identified SHG membership and total annual income as highly significant factors (at the 1% level) influencing timely repayment, while education and land ownership were significant at the 5% level. These findings highlight the critical role of SHGs in enhancing financial discipline and socio-economic resilience. Policy recommendations include strengthening SHG networks, promoting livestock farming, improving market access, and expanding financial literacy programs, especially for marginal and small farmers. SHGs, through collective farming and sustainable practices, can serve as a transformative force in rural agricultural development.
Highlights
- SHG-member farmers demonstrated superior socio-economic outcomes and stronger KCC loan repayment behaviour than non-members.
- SHG membership and annual income were highly significant (1%) determinants; education and land ownership significant (5%) influencers of timely repayment.
- Policy recommendations include strengthening SHG networks, promoting livestock farming, improving market access, and expanding financial literacy among marginal farmers.
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