Differential Interest Rate Scheme Findings of a Field Study

of a Field Study M A Oommen Under the Differential Interest Rates (DIR) scheme, nationalised banks advance to the weaker sections of society loans at a concessional rate of interest of 4 per cent per annum. This paper reports the findings of a field investigation covering 143 households in two districts in Kerala, Trichur and Malappu- ram, borrowing under the scheme. This investigation of these selected beneficiary households shows that while the DIR cannot be faulted on turning out to be a 'relief programme, misallocation and misutilisation of loans has not been avoided, and the loans have not been avoided, and the loans have not always gone to the poor and the needy.