Table-3.6.

1
Descriptive Statistics
Mean Std. Deviation N
Short-term Loans 1828.9370 675.77885 10
Term Loans 531.4370 512.31142 10
Correlations
Short-term Loans Term Loans
Short-term Loans Pearson Correlation 1 .739*
Sig. (2-tailed) .015
N 10 10
Term Loans Pearson Correlation .739* 1
Sig. (2-tailed) .015
N 10 10
*. Correlation is significant at the 0.05 level (2-tailed).

In order to test whether the disbursement of short-term loans has the linear relationship

with the term loans, The CORRELATION is used. The results are furnished in Table-

3.6.1.The disbursement of short-term loans and the term loans of the RRBs have strong

positive Correlation. The linear correlation coefficient is 0.739 which is close to +1 at

5% significance level. This means that the demand for short-term loan increases with the

demand for the term-loan. In other words both short-term and term loan fluctuate almost

in a same direction. Even though as fairly strong correlation is found between the

variables, association between them is found to be partial. That means variations in the

one variable are able to define the variations another only to modest level.
2.4.4. Weaker Sections under Regional Rural Banks

Priority sector loans to the following borrowers will be considered under Weaker
Sections category:

Small and Marginal Farmers

Artisans, village and cottage industries where individual credit limits do not exceed 1
lakh
Beneficiaries under Government Sponsored Schemes such as National Rural Livelihood
Mission (NRLM), National Urban Livelihood Mission (NULM) and Self-Employment
Scheme for Rehabilitation of Manual Scavengers (SRMS)
Scheduled Castes and Scheduled Tribes
Beneficiaries of Differential Rate of Interest (DRI) scheme
Self Help Groups
Distressed farmers indebted to non-institutional lenders
Distressed persons other than farmers, with loan amount not exceeding 1 lakh per
borrower to prepay their debt to non-institutional lenders
Persons with disabilities
Overdrafts up to 5, 000/- under Pradhan Mantri Jan-DhanYojana (PMJDY) accounts,
provided the borrowers' household annual income does not exceed 100, 000/- for rural
areas and 1, 60,000/- for non-rural areas
Minority communities as may be notified by the Government of India from time to time