DETERMINANTS INFLUENCING INSTITUTIONAL AGRICULTURAL CREDIT FLOW: A COMPREHENSIVE REVIEW

Abstract

The institutional agricultural credit is vital for enhancing farm productivity and economic growth. This review paper comprehensively analyzed 60 studies covering the period 1995-2024 from India and other countries, categorizing demand-side and supply-side determinants of credit flow. The study classified literature by year, country, data and publication sources, identifying key trends and research gaps. The review paper highlighted the dominance of secondary data and a strong post-reform focus. The study also revealed underexplored supply-side factors affecting credit distribution. Further, the review study suggested strengthening the institutional frameworks, simplifying the application procedures, increasing bank branches, bank extension services, in rural areas, training to farmers and integrating global best practices to enhance India’s agricultural credit system. This review study provided insights for future research and policy reforms to ensure inclusive and efficient credit access to the farmers.

 Keywords: Institutional agricultural credit, Farm productivity, Economic growth, Demand-side determinants, Supply-side determinants.

JEL Classification: Q14, Q11, O40, Q11, Q11