Multidimensional Constraints to Agricultural Credit access in India: A Systematic Review

Abstract

Agricultural credit plays a vital role in supporting India’s rural economy and improving the livelihoods of small and marginal farmers. Although institutional credit to agriculture has increased substantially in recent years, equitable and effective access remains a persistent challenge. This paper adopts a systematic review approach based on 15 peer-reviewed studies published between 2021 and 2025 to examine the constraints affecting agricultural credit access in India. The review identifies five major categories of constraints: institutional/policy, economic, social/demographic, knowledge/behavioral, and structural/systemic. Key issues include gaps in policy implementation, stringent collateral requirements, bureaucratic delays, farmer indebtedness, disparities across social groups, limited financial literacy, and the continued dependence on informal lenders. The findings indicate that while initiatives such as Kisan Credit Cards, Joint Liability Groups, digital lending platforms, Farmer Producer Organizations, and crop insurance schemes offer partial solutions, a comprehensive and integrated approach is necessary. Strengthening last-mile delivery, simplifying procedures, enhancing awareness, and leveraging technology are critical for achieving inclusive and sustainable agricultural finance in India.