Impact of Microfinance Loans on Paddy Production among Small Holder Farmers in Sri Lanka

Abstract

The objectives of this study are to analyze the impact of microfinance loans on paddy production among smallholder farmers and to identify the differences in paddy production who are the borrowers and non #xFFFD; borrowers of micro finance loans from micro finance institutions in Sri Lanka. For the above purposes, primary data were collected through a structured questionnaire considering six divisional secretariat divisions in Jaffna district, Sri Lanka for the period of 2014 #xFFFD; 2015. A total of 93 respondents were selected randomly from loan beneficiaries and non #xFFFD; loan beneficiaries from the study area. The collected data were analyzed thorough various econometrics techniques such as, frequency analysis, independent sample t test, simple regression using dummy variable and log #xFFFD; log regression model.