Inter-Regional Analysis of Indebtedness among Rural Labour Households in Punjab
Published by: Admin
Authors: Rupinder Kaur and Anita Rani
Abstract
This paper examines the extent and patterns of indebtedness among rural labour households across different regions of Punjab. The findings show that both the incidence of debt and the average loan burden are highest in the South-West region. The average amount of loan per sampled and per indebted household is higher for the non-agricultural labour households as compared to agricultural labour households. These households have taken maximum loans from the non-institutional agencies in all the three regions. The large farmers and money-lenders are the major sources of non-institutional loans. The reliance on non-institutional loans is particularly pronounced in the South-West, while the Shivalik Foothills see the greatest share of borrowing from institutional agencies, with commercial banks serving as the main lenders. The borrowings are largely directed towards consumer purchases, marriages, and socio-religious ceremonies. The household indebtedness is significantly influenced by the number of dependents, the reliance on non-institutional credit, and spending on social functions. The study highlights the need for institutional credit agencies to come forward with new credit schemes for the rural labourers enabling them to avail the required loans at concessional rate of interest.