Strengthening Credit Services to Livestock Sector for Inclusive Rural Growth

Abstract

The present study was carried out to analyse the members’ valuation of different attributes associated with credit delivery through dairy SHGs. The study was carried out on a sample of 60 women members of dairy SHGs formed under SGSY programme of Government of India. Conjoint analysis was carried out to have a quantitative estimate of members’ valuation of different credit attributes. The findings revealed that poor respondents had obtained credit for maximum number of times during the last three years as compared to their richer counterparts and they also had high debt balance yet to be repaid. ‘Interest rate’ emerged as the most important credit related attribute valued by member respondents, followed by ‘timeliness’, ‘credit amount’ and ‘purpose’ of loan. Overall members preferred ‘lower interest rate in comparison to market rate’, ‘shorter timeto- loan decision’, ‘full loan amount’, and ‘loan for production purpose’. Some policy suggestions are given towards strengthening credit services delivery through SHGs.