The study examines the determinants of farmers’ access to formal credit, emphasising the interplay between demand and supply factors influencing credit accessibility and availability. The study is based on cross-sectional survey data from 412 farming households in the Pulwama district of Jammu and Kashmir, India. A systematic random sampling approach is employed to obtain information from respondents. The logit model was employed to estimate the probability of credit accessibility, while the two-limit Tobit model was used to capture the extent of credit accessed. The results reveal that the age of the household head, formal education, farm size, type of crop and membership of any farm organisation significantly increase the probability of accessing credit, reflecting the role of demand-side capacity and awareness. Conversely, distance to the bank, collateral requirements and cumbersome procedures were found to constrain access, highlighting key supply-side bottlenecks. All characteristics substantially elevated the household’s probability of accessing credit. The findings underscore that both demand and supply factors jointly shape credit accessibility from formal sources, suggesting the need for a more inclusive and demand-responsive credit policy, as well as strengthening the institutional delivery mechanism.
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