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Abstract

Growth of institutional credit disbursement and its relation with growth in fertilizer use shows significant positive relationship but credit disbursement shows poor relationship with growth in crop output. The reason for this poor relation are access of a small proportion of large and medium farmers to credit institutions, inadequate and untimely disbursement owing to complicated loan sanctioning procedure, and overlapping of credit institutional operation. Compared to agricultural credit, rural credit for non-farm activities particularly those provided by the Grameen Bank has been better utilized, and timely repaid. However, Grameen Bank still covers a tiny proportion of the total rural poor, so its success should be interpreted with caution.

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