A Study on Challenges & Effectiveness in Agriculture Credit Delivery by Cooperative Banks in Amravati Region

Abstract Background of the Study Agricultural credit plays a vital role in enhancing farm productivity and rural livelihoods in India. In the Amravati region of Maharashtra, cooperative banks and Primary Agricultural Credit Societies (PACS) form the backbone of institutional credit delivery to small and marginal farmers. Despite their extensive network, these institutions face persistent challenges that affect the effectiveness and sustainability of agricultural credit. Research Problem / Purpose The study examines the extent to which cooperative banks in the Amravati region effectively deliver agricultural credit and identifies the institutional, operational, and borrower-related constraints hindering timely and adequate credit access. The purpose is to assess credit delivery performance and its impact on farmers’ satisfaction and welfare. Methodology A descriptive and analytical research design was adopted using a mixed-methods approach. Primary data were collected from 100 farmer-borrowers and 10–20 cooperative bank and PACS officials through structured questionnaires and interviews. Secondary data were sourced from RBI, NABARD reports, and bank records. Descriptive statistics and analytical techniques were employed for data interpretation. Key Findings The study reveals significant delays in loan disbursement, high levels of NPAs, weak governance, political interference, limited technological adoption, and low financial literacy among farmers. These factors collectively reduce credit effectiveness and repayment performance. Conclusion Strengthening governance, improving digital infrastructure, enhancing financial literacy, and streamlining loan procedures are essential to improve the effectiveness and financial viability of cooperative banks in the Amravati region. Keywords Agricultural Credit, Cooperative Banks, Amravati Region, NPAs, Farmers’ Satisfaction, PACS