A study on farmers perception towards agricultural loans in rural areas with reference to Rayalaseema Region, Andhra Pradesh

This paper aims to provide the overall state of rural agriculture loans in the Rayalaseema region, its status, the impact of credit lending, the role of banking institutions and governance in rural finance expenditures, and the improvement, barriers, and challenges throughout the years.

International Journal of Management (IJM) Volume 11, Issue 3, March 2020, pp 175–185, Article ID: IJM_11_03_019 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=3 Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication Scopus Indexed A STUDY ON FARMERS PERCEPTION TOWARDS AGRICULTURAL LOANS IN RURAL AREAS WITH REFERENCE TO RAYALASEEMA REGION, ANDHRA PRADESH K Sarada Siva Reddy Research Scholar, School of Management, Vel Tech Rangarajan Dr.Sagunthala R&D Institute of Science and Technology, Avadi, Chennai, India Dr K Ravishankar Associate Professor, School of Management, Vel Tech Rangarajan Dr.Sagunthala R&D Institute of Science and Technology, Avadi, Chennai, India ABSTRACT This paper aims to provide the overall state of rural agriculture loans in the Rayalaseema region, its status, the impact of credit lending, the role of banking institutions and governance in rural finance expenditures, and the improvement, barriers, and challenges throughout the years The objective measure of access to rural agriculture loans is variable which help as to measure credit lending and the portfolio level of agriculture credit to find managing in financial institution performance Therefore, the results show that the banks give more access than micro finance institutions at summation of large loans for agriculture, but at other side banks give less compared to micro financial institutions at summation of small loans for agriculture Keywords: Rural agriculture loans, access to finance, credit lending Cite this Article: K Sarada Siva Reddy, Dr K Ravishankar, A Study on Farmers Perception towards Agricultural Loans in Rural Areas with Reference to Rayalaseema Region, Andhra Pradesh, International Journal of Management (IJM), 11 (3), 2020, pp 175–185 http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=3 INTRODUCTION According to recent data, the global population growth by 2050 is projected to increase dramatically As a result of this, population growth will increase demand for food Due to increased food demand, it will be impossible to meet these requirements without strengthening the private production sector The banking sector in developing countries gives less credit to the agricultural sector and its development This is the case, although in the http://www.iaeme.com/IJM/index.asp 175 editor@iaeme.com A Study on Farmers Perception towards Agricultural Loans in Rural Areas with Reference to Rayalaseema Region, Andhra Pradesh developing countries the distribution of agriculture in general GDP is quite large The barrier for not lending to developing countries is not the lack of liquidity in the banking sector, but the lack of willingness to make the development of the agricultural sector This fact makes investments in agriculture limited by both participating actors, both farmers and agricultural companies These agricultural loans, which are available to developing countries, tend to be informal and of a short duration, which is directly related to long-term investments These informal agriculture loans only partially cover the needs of farmers and small agricultural businesses, and usually of high interest Due to the importance of improving and developing rural economy, which affects the overall economy of a country, employment, and poverty reduction, expanding the rural agriculture loans is the main goal of the institutions and governments Therefore, the performance and the risk of these agriculture loans tend to be higher The interest rates for agriculture loans are higher than the loans for other activities in the region, even though on the 2015 has been recorded a decrease of interest rate of 3.45%.In the Rayalaseema region agriculture loans are considered as an important instrument for increasing agricultural production and revenue growth, through new technology to get inputs and increase productivity Challenges faced by financial institutions by providing financial products are threefold Transaction costs for achieving remote rural populations The study is necessary because the Rayalaseema Region is considered to be the most backward region in India itself Many farmers have been committing suicides every year Most of the youth are leaving for other places for living There are very few rain falls and the sand is also not fertile There are no live rivers in the region Hence it will be helpful for the elected Government of the region to take steps to improve the Agriculture loaning system There is a lot of scope for the study because it is a very vast area Any amount of investigation can be made since farmers are in very poor condition there For the farmers is a burning problem Help for the farmers of the Rayalaseema Region is inevitable If finance is supplied to the farmers regularly, there may be some improvement in their living standards and their distress may be lessened to some extent LITERATURE REVIEW Mohan, S (2008) (Mohan, S, “Factors Determing the profitability of Central Co-operative bank”, Tamilnadu Journal of Co-operation, Vol.8, No.4, Feb, 2008, pp.63-69.) has examined the factors determining the profitability of central co-operative bank He observes that profitability ratios invite the serious attention of the management to put an integrated effort to correct the financial Performance He suggests that the bank should expand its banking operations in such a way that the non-interest income increase substantially in the near future The European Association of co-operative Banks (2009) (European Association of Cooperative Banks (April 2009), European Co-operative Banks in Financial and Economic Turmoil”, Co-operatives in a world in Crisis (Contribution of EACB to the Experts Group meeting) United Nations- New York.), in its article titled “European Co-operative Banks in Financial and Economic Turmoil” was of the view that despite extensive interest rate cuts, liquidity injections and support measures the financial markets were not stable Figures showed that global economy will experience a deep recession in 2009 and perhaps also 2010 But as has been demonstrated, most co-operative bank groups had fortunately been able to weather the financial crisis relatively well so far without any state support This was due to the fact that they generally had limited exposure to toxic assets, a predominant focus on domestic retail banking with stable results, strong capital buffers and principally conservative risk management The co-operative banks that did report losses due to the subprime crisis were affected primarily at the level of subsidiaries and at the level of APEX institutions The local banks were not hitted directly by the financial crisis Co-operative banks were http://www.iaeme.com/IJM/index.asp 176 editor@iaeme.com K Sarada Siva Reddy, Dr K Ravishankar consequently solid and robust at the local level and accordingly demonstrated stability of the retail banking industry in Europe Mayil Murugan, A (2009) (Mayil Murugan, A “An Empirial Analysis of Capital Adequacy Ratio in Central Co-operative Banks” Tamilnadu Journal of Co-operation, Vol.9 No, Aug, 2009,pp.57-62.) made an Empirical analysis on capital adequacy ratio in Central Co-operative Banks He observed that capital adequacy has reduced the likelihood of failure and increases liquidity of the bank He has concluded that fulfilling the capital adequacy norm is not at all the problem for the bank for ever Singh and Singh (2010) (Singh and Singh (2010), “Technical and Scale Efficiency in District Central Co-operative Banks of Punjab – A Non parametric Analysis”, Indian Cooperative Recivew, Vol XXXXVII, No.1,(Jan),New Delhi.) , in their study titled, “Technical and Scale Efficiency in District Central Co-operative Banks of Punjab – A Non parametric” Had attempted to investigate the extent of technical efficiency across 20 DCCBs of Punjab with the help of data envelopment analysis They brought out that size of DCCBs and profits had been affecting themeasures of technical efficiency significantly The study further revealed that DCCBs of Punjob were suffering from the problems of managerial irregularities and improper production scale Appropriate policy interventions by state government, RBI and NABARD have suggested by the authors Thomas Victor Raja and Chandramohan (2011) (Thomas Victor Raja, D and Chandramohan, R “Fiancing of women Entrepreneurs by District central Co-operative Banks in Tamil Nadu”, Sourthen Economist, Vol.49, Oct-15, 2011,pp.19-22.) , in their study titled “Financing of Women Entrepreneurs by District central co-operative Banks in Tamil Nadu”, They examined study finding revealed that the women entrepreneurs considered for the study are deserving enough capacity to avail the loans, the borrowing and the repayment of loan did not make any hindrance The borrowings of the select DCCBs were mainly focusing more on urban women empowerment This trend must be acknowledgment and recognized effort need to be made to giving more In the case of financial inclusionary attitude, the select DCCBs have been rendering good services to the women community by providing loans in promoting new enterprises of the study area Razaullahkhan, M and Hasyikhairul Makeen, (2012) (Razaullahkhan, M and Hasyikhairul Makeen, “Non-Performing Assets: Co-operative Banks in Jalna”, Sourthen Economist titled “Non-Performing Assets: Co-operative Banks in Jalna”,They examined the financial record of co-operative banks of Jalna and Parbhani districts has been used in the form of Annual Reports from the year 2003-04 to 2009-2010, for the purpose of research Almost all the banks have shown a fluctuating trend of Net NPA Some of the banks have succeeded in reducing the quantum of Net NPA in last two years of study All the banks have earned certain profit in the entire period of the study period except one bank in one year The C.A.R of all the banks is above the prescribed limit of 9% laid down by the RBI Sunitha,nR and Raju, J.K, (2013) (Sunitha, R and Raju, J.K, “A comparative study of NPAs of Banking sector”, southern Economist,vol.51, April-15,2013,pp.9-12) in their study titled “A Comparative study of NPA’s of Banking Sector”, The study observed that the Indian banking sectors especially the private sector have been facing the big challenge of NPAs NPAs are an important parameter in the analysis of financial performance of banks Reduction of NPAs is necessary to improve profitability of the banks and comply with capital adequacy norms It has been observed that the banking sector in India has responded very positively in the field of enhancing the role of market forces regarding measured of prudential regulations of accounting, income recognition, provisioning and exposure, introduction of CAMELS supervisory rating system and reduction of NPA and up gradation of technology http://www.iaeme.com/IJM/index.asp 177 editor@iaeme.com A Study on Farmers Perception towards Agricultural Loans in Rural Areas with Reference to Rayalaseema Region, Andhra Pradesh Problems of finance for agricultural and non-agricultural lending operation, especially institutional finance has often given rise to controversies and paucity of finance has been a major irritant to the farming and non-forming community It is learnt from the review of literature, that the problem has received considerable attention from academicians and researchers, while the number of studies on the need for increasing credit, evaluation of the performance of co-operative loans have not been given due importance In recent years non-repayment is posing an alarming problem to the co-operative due to which number of co-operative banks are unable to disburse fresh loans If these terms persist in future, the very existence of co-operative banks will be in jeopardy Hence it is a need of the day to examine this problem, arrive at definite conclusion and suggest remedies Even such studies were not undertaken in Composite Thanjavur District which is proclaimed as the Granary of Tamil Nadu declared as drought prone area for more than a half decade and subsequently worst hit by flood and Tsunami Kumbakonam Central Co-operative Bank is located in the granary of Tamil Nadu Hence loan assets management of Kumbakonam Central Co-operative Bank Limited, Kumbakonam has been undertaken The present study will fill the gap of knowledge about loan assets management in agricultural and non-agricultural credit in KCCB of Tamil Nadu state as no such study has been made so far in this respect OBJECTIVES   To understand the general farmers characteristics in the study area with confine to socio–economic analysis To make sure the level of attitude of farmers towards settlement of agriculture loans METHODOLOGY AND OBJECTIVES 4.1 Statement of the Problem The main problem is there is less marketing facilities The middle men are getting a lot of income at the cost of both the farmer and the consumer It is already mentioned that Rayalaseema Region is drought prone The farmers in the area suffer from many problems The major problem is shortage of water for agriculture Most of the times they take loans for agriculture purpose from private people who charge more interest on the loans they give The farmers are unable to return them in time and thus they are troubled in many ways Therefore the recognised banks should help them with Agriculture Loans either interest free or with minimum interest Another problem is that they don’t get minimum price for the little production they from lands 4.2 Need for the study The study is necessary because the Rayalaseema Region is considered to be the most backward region in India itself Many farmers have been committing suicides every year Most of the youth are leaving for other places for living There are very few rain falls and the sand is also not fertile There are no live rivers in the region Hence it will be helpful for the elected Government of the region to take steps to improve the Agriculture loaning system 4.3 Scope of the study There is a lot of scope for the study because it is a very vast area Any amount of investigation can be made since farmers are in very poor condition there For the farmers is a burning problem Help for the farmers of the Rayalaseema Region is inevitable If finance is supplied http://www.iaeme.com/IJM/index.asp 178 editor@iaeme.com K Sarada Siva Reddy, Dr K Ravishankar to the farmers regularly, there may be some improvement in their living standards and their distress may be lessened to some extent 4.4 Research Design An Ex-post-facto Research design was adopted for the study, as the variables chosen for the study had already occurred and is proved foul proof Certainly Ex-post-Facto Research is a systematic experimental enquiry in which the researchers don’t have direct control of influencing the variables because it is one-to-one interviews and collection 4.5 Sampling Procedure The Rayalaseema Region is chosen intentionally for the study because the investigator belongs to Chittoor District which is located in the same region of Rayalaseema Secondly the authors are very familiar with the local language which certainly helps to build up quick rapport and also enable in-depth study combined with personal observation The Rayalaseema region consists of four districts such as Anantapuram, Chittoor, Cuddapah and Kurnool are selected Each district is projected as one Block Each Block contains seven villages which are chosen randomly and the Respondents are interviewed instantly without any prior information and therefore the Data collection is original From each block seven villages were selected randomly Sample size : 616 Sampling unit : Rayalaseema Region Sampling Areas : Chittoor, Anantapuramu, Kurnool, Cuddapah districts Overall, a total of twenty-eight (4x7) villages were selected for the investigation 4.6 Methodology of the Study The primary data is collected from farmers in the Rayalaseema Reggion by meeting them personally and asking a pre-prepared questionnaire face-to-face and record their statements The sample size is 616 By using data collection the investigator uses random sampling by interview method The secondary data is collected from the already prepared sources such as books, magazines, journals, Government websites, other theses written on the subject etc 4.7 Tools of Analysis The data were subjected to percentages Percentage is the number, amount, rate etc., expressed as if it is part of a total which is 100 The responses of the farmers were analyzed by using the ranking method in sum of the variables Ranks were assigned for all the statements as per the priorities given by the respondents 4.8 Limitations of the Study The study has certain limitations as indicated below:  The study has the limitation of time resources available for a single investigator  The items included in the study for detailed investigation are also limited because it i not possible to study all the areas in a short span of time  The area of investigation is restricted to one Block in one District As such generalization of the study can be extended to the areas where similar condition exist, but may not have wider applicability  The study is based on the individual expression of Agriculture Loan borrowers which may not be free from personal bias http://www.iaeme.com/IJM/index.asp 179 editor@iaeme.com A Study on Farmers Perception towards Agricultural Loans in Rural Areas with Reference to Rayalaseema Region, Andhra Pradesh ANALYSIS AND DISCUSSION Table Distribution of respondents according to their age S No Age Young (up to 35 years) Middle (35-55 years) Old (above 55 years) Total No.of Respondents 127 206 283 616 Percentage 20.62 33.44 45.94 100 Table No shows the distribution of respondents according to their age There are three categories of people according to the table Up to the age of 35 there are 20.62 percent and they are young Between the age 35-55 who are middle aged are 33.44 percent Above 55 years who are called old are 45.94 percent Thus a total no of 616 respondents has been questioned It is observed that the majority are old according to the table Table Distribution of respondents according to their education S No Education No Formal Education Below High School High Secondary Graduate Post Graduate Professional Total No of Respondents 428 132 56 0 616 Percentage 69.48 21.43 9.09 0 100 Table No: shows the distribution of respondents according to their education The percentage of normal education is the highest with 69.40 and at the same time the percentage Graduate, Post-graduate and professionals is zero because it is rural areas of Rayalaseema The percentage of Below High School is 21.43 and the Percentage of higher secondary is 9.09 Table Distribution of respondents according to their Area of living S No Area of Living Rural Urban Total No of Respondents 504 112 616 Percentage 81.82 18.18 100 Table No: shows the Distribution of respondents according to their Area of living The percentage of the area of Rural living is 81.82 and it is a lot more than the Urban living The Urban Living is just 18.18 percent Thus the rural area where people depend upon Agriculture is more according to the table Table Distribution of respondents according to their Marital Status S No Marital Status Married Unmarried Total http://www.iaeme.com/IJM/index.asp No of Respondents 539 77 616 180 Percentage 87.5 12.5 100 editor@iaeme.com K Sarada Siva Reddy, Dr K Ravishankar Table No: shows the Distribution of respondents according to their Marital Status The percent of Married is 87.5 which is a lot more than the unmarried The Unmarried is just 12.5 percent It is clear from the table that both Married and Unmarried depend on Agriculture a lot Table Distribution of respondents according to the Status of Family S No Status of Family Nuclear Joint Total No of Respondents 476 140 616 Percentage 77.27 22.73 100 Table No: shows the Distribution of respondents according to the Status of Family The percentage of Nuclear is 77.27 and the percentage of Joint families is 22.73 Majority being Nuclear shows the self-centric attitude of the younger generation which is not good for the future Table Distribution of respondents according to their Members of Family S No Members of Family No of Respondents Percentage 448 168 0 616 72.73 27.27 0 100 Below Members 3-6 Members 7-9 Members Above Members Total Table No: show the Distribution of respondents according to their Members of Family The percentage of below members is 72.73 and between and the percentage is 27.27 Because of more Nuclear families more number of members are not visible in the table Table Rank ordering of statement of Social improvement S No Particulars Recognition by other farmers Increased social contacts Recognized as an opinion Membership in one organization Membership in more than one organization No of Respondents 401 455 192 83 Percentage 65.2 73.9 31.2 13.5 Rank 56 9.2 From the above table it is observed that, majority of respondents possessed increased social contact after getting Agriculture loan (rank1) followed by recognition by other farmers (rank2) recognized as an opinion leader (rank3), membership in one organization (rank4)and membership is more than one organization (rank5) Farmers increased their social contacts with their fallow farmers, neighbours and relatives They have been identified by the fellow farmers as the avail of Agriculture loans may influence other farmers http://www.iaeme.com/IJM/index.asp 181 editor@iaeme.com A Study on Farmers Perception towards Agricultural Loans in Rural Areas with Reference to Rayalaseema Region, Andhra Pradesh Table Distribution of respondents according to their social improvement S.No Total Social improvement Low Medium High No of Respondents 364 198 54 616 Percentage 59.09 32.14 8.77 100 From the above table it is clearly shows that, majority of the respondents 59.09% possessed low social improvement followed by medium32.14% and high 8.77% social improvement Table Distribution of respondents according to their economic improvement S.No Economic improvement Low Medium High No of Respondents 437 138 11 Percentage 71.00 27.21 1.79 Table No indicated that there was not much economic improvement due to Agriculture loan system This was due to the reason that Agriculture loan alone does not make significant economic difference in terms of purchase of new additional land, equipment, sprayers etc.The agriculture loan was invested on activites like hiring charges, wages etc which can not directly contribute to the economic improvement Table Rank ordering of the statements of level of attitude of farmers towards agriculture loan S.No Particulars Agricultural loan will help farmers 10 11 12 13 Agricultural loans are easily accessible Agricultural loans system will remove all The bottlenecks faced by cultivators Agricultural loan amount per acre is not adequate to meet all the production expenses Productivity will be increased by agricultural loans Taking agricultural loans generate more employment Agricultural loan system creates interest to the farmers to increase the production by increasing area under cultivation Food problems of our country can be solved by this agricultural loan system Agricultural loan system is helpful to rich farmers only Seasonality is fixed in the recovery of agricultural loans Getting agricultural loan is against prestige and status of farmers Illiterate farmers are unaware of the procedure of getting loan Farmers have to spend money initially http://www.iaeme.com/IJM/index.asp SA 184 (29.87) 151 (24.51) 106 (17.20) A 278 (45.12) 252 (40.90) 143 (23.21) UD 72 (11.68) 96 (15.58) 237 (38.47) DA SD 43 39 (6.98) (6.33) 64 53 (10.38) (8.60) 78 52 (12.66) (8.44) NR 616 Rank I 616 XI 616 XX 162 (26.29) 245 (39.77) 75 68 66 (12 17) (11.03) (10.71) 616 XVIII 46 (7.46) 51 (8.27) 147 (23.86) 78 (12.66) 62 (10.06) 256 (41.55) 112 143 237 (18.18) (23.21) (38.46) 246 153 104 (39.91) (24.83) (16.88) 98 74 41 (15.90) (12.01) (6.65) 616 XXI 616 XVII 616 VIII 55 (8.92) 68 (11.03) 133 (21.59) 41 (6.65) 57 (9.25) 128 87 228 (14.12) (37.01) 76 234 (12.33) (37.98) 242 91 (39.28) (14.77) 54 112 (8.76) (18.18) 64 258 (10.38) (41.88) 264 78 (12.66) 616 XXVI 616 XXIII 616 XXV 616 XXII 616 VII 616 III 182 134 (21.75) 141 (22.88) 84 (13.63) 119 (19.31) 133 (21.59) 81 112 (18.18) 97 (15.74) 66 (10.71) 236 (38.31) 104 (16.88) 65 editor@iaeme.com K Sarada Siva Reddy, Dr K Ravishankar 14 15 16 17 18 19 20 21 22 23 24 25 26 forgetting agricultural loans sanctioned Influence is required to get the agricultural loans High yielding varieties can be cultivated by providing agricultural loans Agricultural loan system plays an important role in transforming traditional agriculture into modern agriculture Present procedure of lending of agricultural loan is not satisfactory Too much of procedural delay is involved for obtaining agricultural loans Taking agricultural loans will influence agriculture pattern Agricultural loan system is good, if it lays down a specific procedure to be followed by the society or bank Majority of the farmers not get agriculture loan from lending agencies in time Though the agriculture loan system is good, vested interests are working against the success of agricultural loan system Farmers are not getting higher prices as they have to repay the agriculture loan system Rate of interest is high under agricultural loan system Agricultural loan is more beneficial to farmers since it is provided in cash Availing institutional credit is safer than non-institutional credit (20.77) (42.85) (13.14) (10.55) 66 (10.71) 164 (26.62) 78 (12.66) 252 (40.90) 91 (14.77) 113 (18.34) 134 247 (21.75) (40.09) 48 39 (7.79) (6.33) 616 XIIII 616 XII 152 (24.67) 248 (40.25) 107 (17.37) 56 (9.09) 53 (8.60) 616 XIII 66 (10.71) 69 (11.20) 74 (12.01) 78 (12.66) 246 (39.93) 84 (13.63) 127 103 (20.61) (16.72) 132 253 (21.42) (41.07) 616 XV 616 IX 234 (37.97) 153 (24.83) 146 (23.70) 262 (42.53) 97 (15.74) 74 (12.01) 72 67 (11.68) (10.87) 68 59 (11.03) (9.57) 616 XXIIII 616 V 246 (39.92) 154 (25.00) 82 (13.31) 73 61 (11.85) (9.90) 616 XVI 49 (7.95) 86 (13.96) 106 (17.20) 137 238 (22.24) (38.63) 616 XVIIII 96 (15.58) 148 (24.02) 253 (41.07) 62 57 (10.06) (9.25) 616 X 47 (7.62) 148 (24.02) 263 (42.69) 54 (8.76) 257 (41.72) 156 (25.32) 86 153 276 (13.96) (24.83) (44.80) 113 54 44 (18.34) (8.76) (7.14) 94 57 46 (15.25) (9.25) (7.46) 616 II 616 VI 616 IV SA: Strongly Agree; A: Agree; UD: Undecided; DA: Disagree; SD: Strongly Disagree; NR: No of Respondents From the above Table No it is clearly indicated that, majority of the farmers felt that agriculture loan will help them(Rank I) followed by rate of interest is high under agriculture loan system (RankII), farmers have to spend money initially for getting agriculture loan sanctioned (RankIII), availing institutional credit is safer non-institutional credit (RankIV), agriculture loan system is good, if it lays down a specific procedure to be followed by the society or bank (RankV), agriculture loan is more beneficial to farmers since it is provided in cash (RankVI), illiterate farmers are unaware of the procedure of getting agriculture loan (RankVII), agriculture loan system creates interest to the farmers to increase the production by increasing area under cultivation (RankVIII), too much of procedural delay is involved for obtaining agriculture loan (RankIX), farmers are not getting higher prices as they have to repay the agriculture loan system (RankX), agriculture loans are easily accessible (RankXI), high yielding varieties can be cultivated by providing agriculture loans (RankXII), agriculture loan system plays an important role on transforming traditional agriculture in to modern agriculture (RankXIII), influence is required to get the agriculture loans (RankXIIII), present procedure of lending of agriculture loan is not satisfactory (RankXV), majority of the farmers not get agriculture loan from the lending agencies in time (RankXVI), taking agriculture http://www.iaeme.com/IJM/index.asp 183 editor@iaeme.com A Study on Farmers Perception towards Agricultural Loans in Rural Areas with Reference to Rayalaseema Region, Andhra Pradesh loans generate more employment (RankXVII), agriculture loans amount per acre is not adequate to meet all the production expences (RankXVIII), though the agriculture loan system is good, vested interests are working against the success of agriculture loan system (RankXVIIII), agriculture loans system will remove all the bottlenecks faced by cultivators (RankXX), productivity will be increased by agriculture loans (RankXXI), getting agriculture loan is against to the prestige and status of farmers (RankXXII), agriculture loan system is helpful to rich farmers only (RankXXIII), taking agriculture loans will influence cropping pattern (RankXXIIII), seasonality is fixed in the recovery of agriculture loans (RankXXV), food problem of our country can be solved by this agriculture loan system (RankXXVI) CONCLUSION From the above study it can be concluded that,  Above 55 years who are called old are 45.94 percent and it is the majority  The percentage of normal education is the highest with 69.40 and it is the majority  The percentage of the area of Rural living is 81.82 and it is the majority  The percent of Married is 87.5 which is a lot more than the unmarried and therefore it is the majority  The percentage of Nuclear is 77.27 and it is the majority  The percentage of below members is 72.73 and it is the majority  The majority of the farmers felt that agriculture loan will help them, followed by rate of interest is high under agriculture loan system  Farmers have to spend money initially for getting agriculture loan sanctioned  Agriculture loans in rural areas depends on a number of factors, such as purpose for which agriculture loans is taken, tenure of the agriculture loans, interest rates The farmers borrows a agriculture loans meant for income generating purpose and uses it for that then it is likely to generate a future income REFRENCES [1] Mohan, S, “Factors Determing the profitability of Central Co-operative bank”, Tamilnadu Journal of Co-operation, Vol.8, No.4, pp.63-69 2008 [2] Thomas Victor Raja, D and Chandramohan, R “Fiancing of women Entrepreneurs by District central Co-operative Banks in Tamil Nadu”, Sourthen Economist, Vol.49, Oct-15, pp 19-22 2011 [3] Sunitha, R and Raju, J.K, “A comparative study of NPAs of Banking sector”, southern Economist,vol.51, April-15, pp.9-12, 2013 [4] Mayil Murugan, A “An Empirial Analysis of Capital Adequacy Ratio in Central Cooperative Banks” Tamilnadu Journal of Co-operation, Vol.9 No, pp.57-62, 2009 [5] European Association of Co-operative Banks European Co-operative Banks in Financial and Economic, (April 2009) [6] Razaullahkhan, M 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