Vol. 9, Issue 8, Part B (2023)

The problem of indebtedness amongst tribals was not only an indication of their poverty but also reflects the wider economic malaise, i.e., lack of education, low purchasing/bargaining power and lack of resources for engaging in gainful activity and meeting emergent expenditure. The objective of the paper is to identify the factors responsible for defaulter and non- defaulter tribal households. Majority of the respondents were in the age group of 31-50 in both the regions. The literacy rate is marginally higher among non-defaulters (56.3) compared to defaulters (52.5) in Seethampeta opposite is true in case of Rampachodavaram such proportions are 51.3 and 60. A major proportion of them belong to cultivators People with more than 10 years of membership is marginally higher in both the defaulters and non-defaulters categories in Seethampeta compared to Rampachodavaram. The average landholding size of defaulters in Seethampeta is 2.9 acres to that of 3.2 acres in Rampachodavaram. More than 41 per cent of the borrowers in Seethampeta come under wilful defaulters category and none expressed such reason in Rampachodavaram. Of the seven reasons for defaulting, five reasons had a lions’ share among the defaulters in Seethampeta compared with Rampachodavaram.