The rural credit scenario has seen a major change due to the Reserve Bank of India (RBI) directives and the union government policy for providing loans to farmers. Loans to farmers have now become much hassle-free. On their part, the banks are ensuring recovery through various mechanisms, instead of encouraging waivers at a later stage.

The BOB has also initiated a Farmers Club, which are meant to be a one stop arrangement not only to provide technical know-how to the peasants, but also to provide information about all the financial schemes, while acting as informal pressure groups in the neighbourhood for repayment.

Gopal Patel of Kashipura Farmers Club of BOB in Pavi Jetpur says that farmers generally seek loan on the basis of the size and the location of their plot. "Where water and irrigation facilities are good, the farmers are inclined to be more progressive as well as dare to take more financial risks, but the marginal tribal farmers are still hesitant about taking loans," said Patel.

Bank officials too opine this to be the probable reason why tribal farmers like Mansinh Badhar, despite being a member of the Farmers Club, are not very keen on availing a loan facility. “I just have 2.5 acres of land and practice rain fed farming of maize and tubers. I don't have the capacity to repay a loan, or go for an expansion,” says Badhar. In contrast, Pravin Baria of Sankheda, who too has around 2.5 acre of land, has opted for a loan of Rs 30,000 to grow cash crops like cotton and tomatoes.

Bank officials say they have now lowered the recovery rates in tribal areas in comparison to other rural areas, to attract more people to the banks for credit.