Factors influencing demand for credit from formal and informal sources in Gujranwala district, Pakistan : a case of Commercial Banks and Arties
Year: 2012
Type: dissertation
Study design: Observational Study
Abstract: The intention of this research was to examine the effects of social and economic factors on credit \ndemand of rice growers from arties and banks in Gujranwala district, Pakistan. The Crosssectional data from 313 randomly selected loan beneficiaries (rice growers), were obtained. The \ndata were analyzed by using multiple regression, t-test, percentages and frequency distributions. \nIt was concluded that factors which showed significant results in both sources banks and arties \nwere farm size, income level, time requirement, payback period and no. of dependent schooling \nchildren. Apart from the mentioned factors which other studies have also established, more \ninteresting factors have been identified by this study including the question of trust between \nArties and borrowers built on information of borrowers on reputation obtained by Arties and also \nfollow up by arties on borrowers’ use of credit. Here information seems to play a crucial role in \nbuilding trust and therefore easing conditions for borrowing since most borrowers received their \nloans without any collateral conditions. Based on these results, it is suggested that banks must \nimprove the amount of loans to agriculture sector in general and to rice growers in particular \ntaking into account information and follow up of their clients. The lenient polices must be \nformulated by banks regarding collateral securities so that small scale rice growers can avail the \nloan facilities at lesser collateral conditions. Besides it, arties must reduce commission rate and \nother type of charges (per acre fixed quantity of rice). The least but not the last, rice must use the \nloan for same purpose for which it is granted.
Source: BIBSYS Brage (BIBSYS (Norway))
Author: Tanveer Hussain
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Zero hunger
Open Access status: green
OpenAlex ID: W2465113013