Abstract:
The main purpose of this investigation was to analyze the relationship between
effectiveness of paddy loan scheme of state bank, A comparative study on Ampara
and Polonnaruwa District. Data were collected from 180 farmers of Polonnaruwa and
Ampara District using of questionnaire. In this study descriptive, mean and Standard
deviation were used to analyze the data.
The results of descriptive analysis revealed that, the level of variables such
recovery rate was ineffective level. The result of the SPSS analysis found there is
significant negative relationship between paddy loan and its recovery rate. Customer
response ineffectively regarding inspection was done by the bank of Ceylon the bank
should continue follow up then only can reduce recovery rate. Customer ineffectively
response regarding the productivity the less productivity is highly effect for recovery
rate because productivity is not expected level.
In this research, Recovery action very important factor because customers are
not willing to settle loan voluntary then follow up is compulsory to keep regular
position.
