ACCESS TO RURAL CREDIT IN INDIA

Abstract

In view of the emerging perspective of rural credit, the importance of rural credit to agriculture and rural
development, the public policy on rural credit in India has been focused on institutionalisation as a means of providing
cheaper credit to farmers. This study examines the various structural constraints that obstruct the credit disbursement in
rural India as well in Andhra Pradesh. The study is based on the data of NSSO’s Debt and Investment Survey report
1992 (48th round), 2003 (59th round) and 2013 (70th round). The structure of credit system has been measures in terms
of access of rural households to different credit sources along with its share and interest rate. The various initiatives
taken by the government have paid off and the flow of institutional credit to rural areas has increased significantly. The
study has found that the structure of credit market has changed over time and the share of institutional credit has
increased. Rural households ‘access to institutional credit is influenced by a number of socio-economic and institutional
factors. A concerted effort and appropriate policy reform are required to make rural households’ access to institutional
credit neutral to caste, class and regions