Credit Gap Analysis in Crop Loans and their Repayment in Western Maharashtra

The study is based on a sample of 68 farmers randomly selected from 6 villages of Dhule district in Western Maharashtra. The sample farms were put into three size classes like small, medium and large holdings and average expenditure on each of these size classes was calculated. Next credit requirements and actual amount of loan disbursed were found out. The difference between the two, served as a measure of credit gap. The size of the gap indicated the inability of the farmers to initiate technological change which requires larger flow of finance. Recovery rate of loans is quite satisfactory meaning thereby that credit risk undertaken by the financing agencies.