Role of institutional credit for agriculture

Abstract

Institutional credit is one of the crucial aspects for the development and continuation of modern day agriculture. Usually differentiated in two separate segments, agricultural credit is one of the essential commodity for the farmers within a nation to prosper and grow in their respective trade. This study includes the evaluation of institutional credit requirements as per Indian agricultural sector. It also consists of the complete discussion related to all the phases of institutional credit initiative policies for better understanding about the government’s regulations for encouraging agriculture. Through detailed discussion about the inclusive aspects of “Credit” in Indian agricultural sector, the aspects which negatively affect the institutional credibility factor have also been cited. Proper usage of institutional credit will not only develop the agricultural sector of the country, it will also increase the entire countries GDP rate resulting in economic prosperity for the country.