CONSTRAINTS TO ACCESS CREDIT AND ITS IMPACT: A STUDY ON FARM HOUSEHOLDS

The study was conducted in Rajshahi, Jamalpur and Rangpur district to identify the constraints to access credit and its impact on farm household. A total 180 farmers of which 30 credit users and 30 credit nonusers from eachdistrictswere selected. The study revealed that highly responded constraints for bank credit were cumbersome procedure (83%), late disbursement of credit (62%), requirement of adequate collateral (61%). High interest rate, short term and small amount of credit were highly responded constraints for credit from NGOs and local moneylenders. The impact of facing these constrains of access to credit createdlot of troubles to get credit such as hamper in agricultural activities (59%), increase cost of credit, and sell agricultural crops at low price to manage the money of every installment. Level of education, having off farm income, membership of any institution andfarmers’ knowledge level about credit were significant determinants to increase probability of access to credit. Access to credit may increase if the NGOs reduce their interest rate of credit. Access to credit from formal institution may increase through improving credit disburse system for hassle free quick, and timely sanction of credit.