Barriers to finance experienced by female owner/managers of marginal farms in India

Abstract Purpose – This paper aims to examine barriers to finance experienced by female owner/managers of marginal farms in the Punjab region of India. Design/methodology/approach – The article is based on the preliminary results of a survey conducted with 48 marginal farmers and 15 bank managers in Punjab, India. Findings – Emergent results show that the relationship of female owner/mangers with their banks was affected by gender prejudices inherent in the male dominated banking sector in India. Loan rejection rates for female owner/managers were significantly greater than those of their male counterparts. The incidence of bank managers requiring collateral/referral letters was considerably higher for female owner/managers than for equivalent male applicants. Research limitations/implications – The research sample explored in this study is small and drawn exclusively from the Punjab region of India and it might not be representative of the wider population of farmers in India. Practical implications – To enhance the competitiveness of the agricultural sector in India, policy makers and associated government agencies should develop support initiatives aimed specifically at marginal farmers in general and female owner/managers in particular. Social implications – Even though the research sample is small the results of the study could have implications for policy makers, bank managers and regional development agencies in India as well as other developing countries. Originality/value – The results of this research contribute to better awareness and understanding of barriers to finance experienced by female owner/managers of marginal farms in Punjab, India.