Factors Affecting Delay in Repayments of Agricultural Credit; A Case Study of District Kasur of Punjab Province

Abstract: The productive use of agricultural credit in Pakistan is quite limited that affects the repayments behavior of the farmers and ultimately categorization of loans into default stages and finally auction of their lands. This paper attempts to analyze different factors affecting the repayments of agricultural credit in district Kasur of Punjab province. For the purpose purposive sampling was adopted and 60 respondents were selected after booting a list of defaulters from respective branches of UBL. Through well structured questionnaires necessary information were collected from the respondents as well as from the bank employees regarding actual delay in repayments of these selected clients. Finally, data were summarized using descriptive statistics and found that sloppy supervision by the bank employees, miss-utilization of loans, high interest rate and change in business/residential place of the borrowers etc. caused delay in repayments of agricultural credit. Key words: Agricultural credit Repayments NPLs Pakistan