Impact Assessment of Rural Credit Mechanisms on Agricultural Growth and Livelihood Improvement

Author:Imran Ahmed, Arvind Kumar Yadav

Abstract:
Rural credit plays a crucial role in promoting agricultural growth and improving the livelihoods of rural households in developing economies, particularly in India. This research paper evaluates the impact of various rural credit mechanisms, including institutional finance, cooperative credit, microfinance, and government-sponsored schemes, on agricultural productivity and livelihood enhancement. Using secondary data from national surveys, published research, and policy documents, the study highlights how access to affordable and timely credit facilitates technological adoption, crop diversification, employment generation, income growth, and poverty reduction. The findings indicate that institutional credit significantly contributes to agricultural productivity and livelihood security. However, challenges such as regional imbalances, procedural complexities, and rising indebtedness remain. The study concludes with policy recommendations to strengthen rural credit delivery systems and ensure sustainable and inclusive rural development.

Keywords:Rural Credit, Agricultural Growth, Livelihood Improvement, Financial Inclusion, Institutional Credit, Rural Development.

DOI:10.46333/ijtc/14/2/7

International Journal of Trade & Commerce (Vol: 14 Issue:2)