Impact of Crop Loan on Farm Eonomy in Hilly Regions of India : Economic Impact of Institutional Crop Financing Schemes on Farm Households in Bageshwar district of Uttarakhand

Crop Loan is a financial term, available to the farmers in the form of short-term credit for financing crop production programmes. It is one of the essential requirements for the growth of agricultural production & productivity. In India, more than 50 per cent population lives in rural areas and approximately 60 per cent population depends on agriculture. But still agriculture confronts multiple risk and uncertainty due to lack of scattered land holdings, traditional mode of production, low use of modern inputs and technologies and lack of market incentives. This lead ultimately low yield and farmers demoralized and invest less in it. Therefore, Agricultural Credit Policy essentially lays emphasis on augmenting credit flow at the ground level through credit planning, adoption of region-specific strategies, rationalization of lending policies and procedures and bringing down the cost of borrowing and ultimately to provide better access to institutional credit for small and marginal farmers to enable them so as to adopt modern technology and induce them for the investment in agriculture.