Background/ Objectives: In India, the private organizations play exploitive role in farmer’s credit. Farmers approach credit not only for cultivation but also for their family maintenance. In this context, this study makes objectives as to analyse the credit availability from different sources to the farm households and examine which factors influence more the farmers to borrow from moneylenders or commission agents or Input dealers (Non-institutional) alone.
Method/ Statistical Analysis: For collecting the primary data, we employed the stratified multi-stage random sampling. Fifty samples are collected from each village and totally 100 sample respondents for intensive study. Multinomial logistic regression model is employed for analysing the factors influence farmer’s approach to money lenders for their credit in the study area.
Findings: Overall, the study reveals that most of the farmers depend on non-institutional sources rather than the institutional sources. Gross Agriculture Income, Type of ownership, income from other than agriculture and farm size influence the farmers to borrow from non-institutional sources i.e. Money lender.
Application: We recommend for the setup of farmer’s friendly financial institutions like, SHGs, Agri co-operative societies etc. Also to create the awareness on insurance of crop and insurance of farmer as a unit through advertisement campaign at village level and encourage low cost farming viz., Subhash Palekar’s zero budget farming, organic farming etc.