Understanding the impact of Microfinance credit on Small and Marginal Farmers in Lucknow, Uttar Pradesh

  • Dr.Ambrish et al.


Microfinance is a form of financial services for those who want to start their own business. The basic aim of Microfinance is to provide help to poor people without any security. Thereby, microfinance credit is important source of credit to small and marginal farmers. This study examined about impact of microfinance credit on small and marginal farmers in district Lucknow of Uttar Pradesh. In this study mixed approach of research technique is used, in which both qualitative and quantitative research methods were practiced.  Convenience sampling procedure was adopted to select 400 small and marginal farmers for study and data from selected farmers were collected with the help of structured questionnaire. The results of the study indicate that 90% of the farmers availed credit from   microfinance institutions and it was also found that the interest rates were high, which had negatively impacted to the small and marginal farmers. The study concluded that microfinance credit has contributed significantly in the economic life of small and marginal farmers to increase their farm production. It was recommended that there should be more promotion activities to make aware small and marginal farmers about microfinance credit and farm production management, as well. In addition to this, rate charged by the microfinance institutions on credit should be reduced.