Financial Inclusion and Territorial Development: an observation on the geographical coverage of the agricultural credit instrument

Abstract

If the agricultural sector is considered the pillar in the generation of employment and productive economic development, accounting for 8% of the Gross Domestic Product, they face an inequality gap in access to formal credit by banks, this problem is so significant that Only 4.2% of the diners in this activity are financed, in congruence with it, the agricultural matter has always been the target of research, this is in matters of sovereignty, territorial development, entrepreneurship and economic-financial management, in controversy With the aforementioned, the concrete solutions to the ingrained uncertainties are negligible, for which this research seeks to determine the behavior of public agricultural financing, in the generation of sustainability and growth, in turn to propose an empirical solution in the credit context, the The results of the sketch allowed observing the high level of inequality in rural areas, as well as the level of poverty. Likewise, agricultural credit maintains ordinary rates and in the case of micro-businesses they are abysmal, it is for this reason that the credit rate and the management for issuing these credits must be technical in order to safeguard the slack and a financial cost low so that it does not limit the growth of the entity.