| dc.description.abstract | The intention of this research was to examine the effects of social and economic factors on credit
demand of rice growers from arties and banks in Gujranwala district, Pakistan. The Crosssectional data from 313 randomly selected loan beneficiaries (rice growers), were obtained. The
data were analyzed by using multiple regression, t-test, percentages and frequency distributions.
It was concluded that factors which showed significant results in both sources banks and arties
were farm size, income level, time requirement, payback period and no. of dependent schooling
children. Apart from the mentioned factors which other studies have also established, more
interesting factors have been identified by this study including the question of trust between
Arties and borrowers built on information of borrowers on reputation obtained by Arties and also
follow up by arties on borrowers’ use of credit. Here information seems to play a crucial role in
building trust and therefore easing conditions for borrowing since most borrowers received their
loans without any collateral conditions. Based on these results, it is suggested that banks must
improve the amount of loans to agriculture sector in general and to rice growers in particular
taking into account information and follow up of their clients. The lenient polices must be
formulated by banks regarding collateral securities so that small scale rice growers can avail the
loan facilities at lesser collateral conditions. Besides it, arties must reduce commission rate and
other type of charges (per acre fixed quantity of rice). The least but not the last, rice must use the
loan for same purpose for which it is granted. | no_NO |
