Identifying the determinants of access to agricultural credit in Southern Punjab of Pakistan

Based on the survey data of 250 farmers from the Multan district of Southern region of Punjab, Pakistan this study aims to empirically examine the determinants of access to agricultural credit. This study used the probit model to analyze the data. The results revealed that formal education, farm size, level of farm mechanization, farm revenue and landholding size positively and significantly influenced access to agricultural credit while the age of the farmer's, distance, and off- farm income negatively and insignificantly influenced farmer's accessibility to agricultural credit. The findings of the current study offer a policy guideline to streamline national policy on agricultural finance. This study also recommends that ZaraiTaraqiati Bank (ZTBL) and other Commercial Banks should improve their agricultural credit schemes to fulfil the diversified needs of small farm holders.