Author: Maheswar Sahoo
AIT Library Call Number: AIT RSPR no. HS-93-09
Year: 1993
Academic Program: Human Settlement (HS)
Type: Research Studies Project Report (M.Sc.) – Asian Institute of Technology, 1993
Examination Committee: Jayant Kumar Routray (Chairperson); Hans Detlef Kammeier, A.T.M. Nurul Amin (Examination Committee Members)
Abstract: The study has analyzed the role of l and titles in obtaining agricultural loans from formal sources in two districts in Buriram province of Thailand. Transferable land titles could be used as collateral to obtain loans from commercial banks. Without such titles, loans in small amounts are available from the Bank of Agriculture and Agricultural Cooperatives and the cooperatives. The study found that due to structural constraints, e.g., interest rate structure, transaction costs etc., the credit sources tend to be sorted in terms of volume of loan and the duration intended. Some types of loans are unavailable irrespective of collateral availability. Despite existence of multiple credit institutions, viz., commercial banks, the BAAC and the cooperatives, agricultural credit is characterized by monopolistic features. The average size of loan for farmers with transferable land rights is about 60% higher than those without. There is however no significant difference among the holders of non-transferable titles and those who have no documented right on land. Since no loans (in the sample) have been obtained with land as collateral even when transferable rights exist, the higher average size of loans is attributable to perceived security of tenure. Those with transferable rights are motivated to invest on land, while lack of it generates doubt about long term security of the holding. Low investment in agriculture leads to low productivity and low income, thereby defeating the most important objective of land allocation, i.e., to alleviate rural poverty.
Scholarship Donor(s): Deutscher Akademischer Austauschdienst (DAAD), Germany
Note: A Research Study submitted in partial fulfillment of the requirements of the degree of Master of Science, School of Engineering and Technology
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