Process of Advancement of Loan and Its Adoption in Faizabad District of Uttar Pradesh

Agriculture sector provides employment to nearly 52% of the work force. Lead Bank is a unique model formulated by the RBI to reduce regional and sectorial imbalances existing in the economy in terms of loan advancement. The present study was conducted in Masodha block of Faizabad district (U.P.) on100 beneficiaries selected through proportionate sampling from five sample villages on the basis of majority of beneficiaries. The respondents were contacted personally for data collection and interviewed with structured schedule. The impact of government sponsored scheme on beneficiaries before and after utilizing the bank credit in terms of income, asset and employment generation was examined and evaluated. The finding shows that out of 17 variables like age, education, extent of contact, risk orientation and knowledge extent of process of loan had highly significant and positive correlation with adoption of process of advancement of loan. The findings of the study are eye opener for extension policy makers and government to frame suitable policy for upliftment of rural people.