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Impact of rural credit and finance
on rural consumerism
Presented by :
Akash Molla
Bhavar Singh Bhagel
Who is a consumer ?
“An individual who buys products or
services for personal use and not for
manufacture or resale.”
Rea...
What is consumerism
 “Organized-efforts by individuals, groups, and
governments to help protect consumers from
policies a...
Why rural people need credit and finance?
1. Insufficiency:
“In spite of expansion of rural credit structure, the
volume ...
 2.Inadequate Amount of Sanction:
“The amount of loan sanctioned to the farmers by the agencies is
also very much inadequ...
 3. Lesser Attention of Poor Farmers:
 “Rural credit agencies and its schemes have failed to meet the
needs of the small...
 4. Growing Over-dues:
“The problem of over-dues in agricultural credit continues to be
an area of concern. The recovery ...
 5. Inadequate Institutional Coverage:
“In India, the institutional credit arrangement continues to be
inadequate as comp...
6. Red Tapism:
“Institutional agricultural-credit is subjected to red-
tapism. Credit institutions are still adopting cum...
Types of rural credit
1. Institutional credit
2. Non institutional credit
Institutional credit sources
 Cooperative credit society
 Commercial banks
 Regional rural banks
 Land development ban...
Non Institutional credit
Traders and commission agents
Land lords
Money lenders
Significance of rural credit and finance
1. Promotes economic growth
2. Savings
3. Agricultural improvement
4. Access to p...
** Impact on rural consumerism **
 Rapid expansion of commercial banks and overall positive impact
 Expanded rural finan...
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Impact of rural credit and finance on rural and agricultural marketing

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Impact of rural credit and finance on rural (1)

  1. 1. Impact of rural credit and finance on rural consumerism Presented by : Akash Molla Bhavar Singh Bhagel
  2. 2. Who is a consumer ? “An individual who buys products or services for personal use and not for manufacture or resale.” Read more: http://www.investorwords.com/1055/consumer.html#ixzz3tYBhihIH
  3. 3. What is consumerism  “Organized-efforts by individuals, groups, and governments to help protect consumers from policies and practices that infringe consumer rights to fair business practices.” Read more: http://www.businessdictionary.com/definition/consumerism.html#ixzz3tYCRTfKt
  4. 4. Why rural people need credit and finance? 1. Insufficiency: “In spite of expansion of rural credit structure, the volume of rural credit in the country is still insufficient as compared to its growing requirement arising out of increase in prices of agricultural inputs.”
  5. 5.  2.Inadequate Amount of Sanction: “The amount of loan sanctioned to the farmers by the agencies is also very much inadequate for meeting their different aspects of agricultural operations. Considering the amount of loan sanctioned as inadequate and insignificant, the farmers often divert such loan for unproductive purposes and thereby dilute the very purpose of such loan.”
  6. 6.  3. Lesser Attention of Poor Farmers:  “Rural credit agencies and its schemes have failed to meet the needs of the small and marginal farmers. Thus, lesser attention has been given on the credit needs of the needy farmers whereas the comparatively well-to-do farmers are getting more attention from the credit agencies for their better credit worthiness.”
  7. 7.  4. Growing Over-dues: “The problem of over-dues in agricultural credit continues to be an area of concern. The recovery of agricultural advances to various institutions is also not at all satisfactory. In 1997-98, the recovery of agricultural advances of commercial banks, co- operative banks and regional rural banks were 63 per cent, 66 per cent and 57 per cent respectively. Such growing over-dues has also been resulted from poor repaying capacity of farmers. As a result of that, the credit agencies are becoming wary of granting loan to farmers.”
  8. 8.  5. Inadequate Institutional Coverage: “In India, the institutional credit arrangement continues to be inadequate as compared to its growing needs. The development of co-operative credit institutions like Primary agricultural credit societies, land development banks, commercial banks and regional rural banks, have failed to cover the entire rural farmers of the country.”
  9. 9. 6. Red Tapism: “Institutional agricultural-credit is subjected to red- tapism. Credit institutions are still adopting cumbersome rules and formalities for advancing loan to farmers which ultimately force the farmers to depend more on costly non-institutional sources of credit.”
  10. 10. Types of rural credit 1. Institutional credit 2. Non institutional credit
  11. 11. Institutional credit sources  Cooperative credit society  Commercial banks  Regional rural banks  Land development banks  The government
  12. 12. Non Institutional credit Traders and commission agents Land lords Money lenders
  13. 13. Significance of rural credit and finance 1. Promotes economic growth 2. Savings 3. Agricultural improvement 4. Access to payment system 5. Reduce vulnerability 6. Access to formal insurance
  14. 14. ** Impact on rural consumerism **  Rapid expansion of commercial banks and overall positive impact  Expanded rural financial system and agricultural growth  Rural wage system improvement  Non firm sector growth in rural India  Improvement of lifestyle  Financial services protecting poor rural households  Assets development  Technological inputs  Reduced rural financial imbalances  Rural and urban agricultural goods demand restored
  15. 15. Thank You
  • AbuTahir13

    Oct. 28, 2020
  • rathinammohanraj

    Aug. 6, 2020
  • VikasJaiswal76

    Sep. 4, 2019
  • glsh1

    May. 16, 2018
  • DibyajyotiMohanty2

    Jun. 25, 2017

Impact of rural credit and finance on rural and agricultural marketing

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