Kanchipuram district of 'Varni! Nadu was ... Kanchlpuram district comprised 8. Taluks and 13. blocks. ..... management in agriculture-A study in Dharwad District,.
indian Journal (Jj'Animal Sciences 74 (7): 783-786, July 2004
Factors influencing repayment performance of livestock farmers: An application of discriminant function analysis* A SERMA SARAVANA PANDIANJ, K N SELVAKUMARhmd B GANESH KUMAR l
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Tamil Nadu University of Veterinary and Animal Sciences, Chennai, Tamil Nadu 6QO 007 Jndia Received: 8 August 2002, Accepted: 24 December ~003 ABSTRACT The Iinear discriminant function analysis was used to identify the variables that are important in cliscriminating betwoep non-defaulters and defaulters. Independent variables (15) - educatioriallevel oftne borrower-fanner, family size, political influence. amount of loan borrowed, distance from credit institution, way of marketing, repayment capacity, income tram animal husbandry, total income of the family, family consumption expenditure; land holdin'g cat~g()ry, caste and total aSsd' of tht: fumi ly, were included for analysis. The results of the step-wise selection revealed the educational levd of the borrower. political inl1uence, loan amount, repayment capacity and family consumption expenditure and these were' the important significant variables, ..yhich discriminatqd non-defaulters from defaulters. The results of the classification! of cases based on the score obtained by the discriminant function had shown that among the nO.\1-defaulters 71.9 % were predicted correctly by the model, while among the defaulters 87.9% were identified correctly. In total 80 per cent of the original grouped cases were correctly class,ifled by the !,TIode!. ' ." .
:Key words: Discriminant aoal;ysis, Livesto()~il(jan'S, Repaymettt. Economf(;S
Credit has become an indispensable. inpllt to the practitioners of modern animal husbandry. Credit can. be dynamic, on ly when it is confined to those who .have potential to produce mOI'e, and are capable torepay thel08n in time (Arun Kumar 1993). Tamil Nadu, the southern most state of the country has a good network 0 f financialinstitutions with about 7.21 % of the total commercial banks in India. Mounting overdues in these financial institutions have made them not to dispense the loans in a relaxed manner. Agriculture credit institutions face many prospective borrowers; the prOblem of lenders is to identify those borrowers, who have the ability, resources and honesty for repayment of loans. Generally the lend decisions are based on experience and result from the application of 'Rules of thumb'. The problem of selecting appropriate criteria is made difficult by the interrelationship among the factors, which may affect debt repayment. Therefore, the present study was undertaken to find out *Part of the M.V.Sc., Thesis of the First Author. Present Address: 'Research Associate, Department of AH Economics, Madras Veterinary College, Chennai 600 007. 2Professor and Head, Department of Animal Husbandry Economics, Madras Veterinary College, Chennai 600 007. 3Scientist. Central Agricultural Research Institute, A.& N Islands, Port Blair. I
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the solutioll.t6 the problems fa
