Debt Management Practices in Primary Agricultural Credit Cooperative Societies (PACS) in India
An Empirical Study from Rural Karnataka

Sumukha M.B | Bharath M

Dayananda Sagar Academy of Technology and Management, Bangalore

mbsumukha@gmail.com | bharath.573201@gmail.com

ABSTRACT
Agricultural cooperative credit organizations play a crucial role in shaping India's rural financial landscape. They extend credit and various financial services to farming populations who have traditionally been neglected by conventional banking systems. This research investigates how village-level Primary Agricultural Credit Co-operative Societies (PACS) operate their lending processes, what drives loan repayment, and how well they handle debt overall. We gathered our evidence from a grassroots PACS institution located in Sringeri Taluk, Chikkamagaluru District, in Karnataka.

Our approach combined descriptive methods with quantitative analysis. We surveyed 312 borrowers who were selected through convenience sampling using an online Google Forms questionnaire. To make sense of the data, we used various statistical techniques: percentage analysis, Mean, Median and Mode, Pearson Correlation, One-Way ANOVA, One-Sample t-Test, and Multiple Linear Regression. The findings point toward several actionable strategies: upgrading systems through digitalization, offering lending that adapts to borrowers' income levels, arranging repayment in line with the farming season, and investing in organizational capacity to keep PACS robust and functioning well across India.

Keywords: Agricultural Co-operative, PACS, Lending Process, Debt Management, Loan Repayment, Rural Credit, Financial Sustainability, Karnataka, India.