Factors affecting loan default and repayment on tribal households in Andhra Pradesh

The indebtedness of tribal households in Andhra Pradesh was sharp contrast to the situation prevailing at all India level. Not only percentage indebted high but even amount dues were also much higher than corresponding figures. Much more alarming fact that nearly two-thirds these loans for unproductive purposes, too from non-institutional agencies a interest rates (20 per cent and above). Above all, non-tribals emerged as single largest source finance accounting one-third borrowings Pradesh. Administration credit disbursement recovery operations need suitable efficient network institutional structure. Indiscriminate diversion agricultural purposes wilful default loan repayment hinder smooth flow loans. SAO used accounted 83.8 76.3 non-defaulters defaulters Rampachodavaram while 71.3 65 respectively Seethampeta region. A very low number borrowers debts both regions. proportion outstanding among is GPCMS compared with other sources borrowings.