Record Details

Informal Financing: An Evidence of Trade-Loan Nexus Between Money Lenders and Borrowers

Journal of Insurance and Financial Management

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Title Informal Financing: An Evidence of Trade-Loan Nexus Between Money Lenders and Borrowers
 
Creator Ansari, Jugnu
 
Description Using primary survey data of farmers in a major potato producing district of West Bengal state in India, this study provides theoretical and empirical perspectives that trade-loan nexus increases defaults on agricultural loans through high repayment obligations resulting from high interest rates and low income resulting from unfair trade in the local oligopoly and oligopsony markets for inputs and output, respectively. The increased defaults help the money lender to widen her market share in the rural agricultural loan market as the formal sector becomes reluctant to lend in the presence of pervasive defaults. In this study, we revisit the relationship between money lenders and farmers through the age old trade-loan nexus in the presence of formal banking sector and Government sponsored scheme to meet credit needs of farmers. These findings have crucial implications for policies aimed at financial inclusion in the emerging economies context.  
 
Publisher Journal of Insurance and Financial Management
 
Contributor —
 
Date 2017-09-05
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/101
 
Source Journal of Insurance and Financial Management; Vol 3, No 3 (2017): Journal of Insurance and Financial Management
2371-2112
 
Language eng
 
Relation https://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/101/pdf
 
Rights Copyright (c) 2017 Jugnu Ansari
http://creativecommons.org/licenses/by/4.0