LENDING DYNAMICS OF PACS IN KERALA: A COMPREHENSIVE STUDY OF AGRICULTURAL AND NON-AGRICULTURAL LOANS

Primary Agricultural Credit Societies (PACS) play a pivotal role in providing financial support to the agricultural sector and rural communities. This study analyses the lending activities of PACS in Kerala from 2007-08 to 2021-22, focusing on the shift from agricultural to non-agricultural lending. Utilising secondary data from the Department of Cooperation and the Kerala State Planning Board, the research examined the trends and patterns in short-term, medium-term, and long-term loans for both agricultural and non-agricultural purposes. The findings reveal a significant increase in non-agricultural lending, reflecting a strategic shift in PACS priorities. The study discusses the implications of these changes for rural development and provides recommendations for policy interventions to ensure balanced support for both sectors.