The Effectiveness of Cooperative Banks in Meeting the Agricultural Credit Needs of Farmers: A Study of Amravati Region

Abstract Agriculture plays a vital role in the Indian economy by providing employment and sustaining rural livelihoods. Access to timely and adequate agricultural credit is essential for enhancing farm productivity and ensuring income stability for farmers. Cooperative banks were established with the objective of providing affordable and accessible credit to farmers, especially small and marginal farmers, and reducing dependence on informal moneylenders. The present study examines the effectiveness of cooperative banks in meeting the agricultural credit needs of farmers in the Amravati region of Maharashtra. The study is based on both primary and secondary data. Primary data were collected from farmers using structured questionnaires, while secondary data were obtained from reports, journals, and publications of NABARD and RBI. Statistical tools such as percentage analysis and hypothesis testing were used for data analysis. The study evaluates key factors such as accessibility, adequacy, timeliness of credit, and farmers’ satisfaction with cooperative banking services. The findings indicate that cooperative banks play a significant role in agricultural credit delivery; however, issues such as procedural delays, inadequate loan amounts, and limited awareness still affect their overall effectiveness. The study concludes that cooperative banks are effective to a considerable extent but require operational improvements to better serve farmers in the Amravati region. Keywords Cooperative Banks, Agricultural Credit, Farmers, Rural Development, Amravati Region