Exploring Farmers’ Experiences and Attitudes towards Agricultural Loans in Bilaspur District of Himachal Pradesh, India

Abstract

This study was conducted to examine the socio-economic characteristics and perceptions of farmers in Bilaspur District, Himachal Pradesh, with a focus on rural agricultural loans, credit availability, farm impacts, and the role of banks and governance. The study highlighted the progress, constraints, and challenges associated with agricultural credit delivery in the district. A total of 200 respondents were selected as the sample for the present study. The respondents were selected using convenience sampling method from the study area. Findings revealed that a significant proportion of farmers (45.9%) are above 55 years, while only 20.6% are youth (up to 35 years), highlighting limited involvement of younger generations in agriculture. For data analysis, Statistical Package for the Social Sciences (SPSS) software was used. The majority of respondents resides in rural areas (81.8%), belong to nuclear families (77.3%), and maintain small household sizes. Social (59.1% low) and economic (71.0% low) development levels are modest, reflecting constrained socio-economic advancement. The region’s cropping pattern is overwhelmingly cereal-dominated, indicating heavy reliance on traditional crops with very limited diversification into vegetables and oilseeds. Educational qualification and farm size playing a significant role in shaping farmers’ perceptions and access to agricultural finance. Higher-educated farmers demonstrate greater awareness of banking procedures, credit policies, and available financial sources, whereas less-educated farmers face challenges due to limited financial literacy. Similarly, small and large farmers experience different difficulties in obtaining loans. Although farmers recognize the benefits of agricultural credit for production and institutional support, concerns over high interest rates, delays, limited loan amounts, and accessibility temper their overall positive attitude. The findings emphasized the need for more inclusive, efficient, and farmer-friendly credit mechanisms, along with targeted financial literacy programs to facilitate equitable access to agricultural finance.