Agriculture; Farmers; Finance; Rural; Loans; Northern India.


India is among the most rapidly developing economies in Asia. It is also among the largest emerging economies because of the high growth rate in GDP that it has experienced in the past two decades. It has significantly high poverty levels with most people living in agrarian, rural communities. Developments in agriculture have enabled the country to overcome high poverty levels and food scarcity. This paper focuses on the use of rural financing in Northern India for poverty alleviation through agriculture. The paper addresses the use of different models of rural financing in India. It shows the significance of cooperative banks and self-help groups in availing credit to rural farmers. The findings highlight weaknesses in the system and show how it has been ineffective in addressing challenges facing farmers in Northern India. It also indicates that many farmers rely on sellers of seeds, equipment, and chemicals for credit in order to meet their needs. This is ineffective because of inaccessibility and high transaction costs.

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