Evaluation of the role of banks\' micro-credit in agricultural developmentA case study of gross root corporatives of Khodabande

In the rural and agricultural development literature one way to resolve agricultural financial problems, is presenting micro credit. The importance of this subject was revealed when decision makers in agricultural planning found out the negative results of a direct payment in credit programs. In this process, therefore the method of credit payment changed form macro to micro in which local institutes and NGOs are considered.
In this context, due to a family connection among the members and a trust among them, the local gross root corporatives can be a good means of organizing dispersed savings, receiving credit and devoting it to develop agricultural activities through a group activity and mutual benefits. In this paper the effects of using the agricultural Band's micro credit, paid in group payment form during the years 1995-2005 in the rural areas of Khodabandeh, Zanjan Province, is studied. The main question of this study is "whether the micro credits of this band that is paid through local gross root corporatives have led into developing agricultural activities of the rural areas in this city or not'?