SEGMENTATION AND INTEREST RATE IN RURAL CREDIT MARKETS: SOME EVIDENCE FROM EASTERN UTTAR PRADESH, INDIA

This study has investigated into the co-existence of the formal and informal sources of credit and their relative contribution in lending. By using one year primary data from Mirzapur and Varanasi districts in eastern Uttar Prodesh, India, the study revealed that the formal sector accept a wide variety of tangible and intangible collaterals. The informal sector was found to have emphasized land as collateral as compared to the formal sector. The poor borrower rely more on informal lenders due to the difficulty in accessibility to formal sector. The informal lenders exploit the borrowers by charging higher rates of interest.


Issue Date:
Dec 31 1993
Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN 0237-3539 (Other)
PURL Identifier:
http://purl.umn.edu/202864
Published in:
Bangladesh Journal of Agricultural Economics, Volume 16, Number 2
Page range:
107-117
Total Pages:
11
Series Statement:
XVI
2




 Record created 2017-04-01, last modified 2017-10-22

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