PSYCHOLOGICAL AND ECONOMIC DIMENSIONS OF FARM CREDIT ACCESS: UNDERSTANDING THE FARMING COMMUNITY IN MAHARASHTRA

DURGESHWARY KOLHE; ARSHAD BHAT

doi:10.22159/ijags.2025v13i4.54062

Authors

DURGESHWARY KOLHE Department of Science in Clinical Psychology, School of Vedic Sciences, MIT-ADT University, Pune, Maharashtra, India
ARSHAD BHAT Amity Institute of Liberal Arts, Amity University Mumbai, Maharashtra, India.

DOI:

https://doi.org/10.22159/ijags.2025v13i4.54062

Keywords:

Agricultural finance, Behavioral economics, Farm credit access, Financial literacy gender disparities, Maharashtra agriculture, Psychological barriers, Rural finance

Abstract

The chapter explores the intricate relationship between psychological aspects and economic factors regarding farm credit availability in Maharashtra’s farming community. The study investigates how psychological obstacles, behavioral economics, and socioeconomic inequalities affect farmers’ approaches to seeking credit and their financial decision-making processes. Using an interdisciplinary approach, the chapter explores how financial literacy, cognitive biases, and psychological stress influence credit utilization behaviors. A thorough analysis of gender inequalities, the mental health effects of debt, and the success of behavioral interventions offers valuable understanding of the complex issues encountered by farmers. The dialog includes institutional lending systems, governmental programs, and the impact of technological advancements on enhancing credit availability. Particular emphasis is placed on the psychological effects of debt load and the significance of mental health assistance systems. The chapter wraps up by suggesting comprehensive policy recommendations that blend psychological perspectives with economic strategies to establish more efficient and sustainable agricultural credit systems. This comprehensive method seeks to improve comprehension of the complex connection between mental health and economic security in Maharashtra’s agricultural communities.

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