Impact of regional rural banks credit on empowerment of farmers – A case study in Mysore district

The credit is a basic input for any development programme. This is particularly true for agricultural development, which has its goal to improve the standards of living of realties as well as to increase agricultural productivity. Unless sufficient credit is provided to the development programme for the weaker section of the society the goal of development programmes cannot be achieved. The credit requirements of farmers can be classified into two types – productive and unproductive loans. The farmer includes loans to buy seeds, fertilizers, implements etc. To pay taxes to the Government and to make permanent improvements on land such as digging and deepening of wells, fencing of land. All these forms of credit help the farmers in their agricultural operations or improving their land besides these the Indian farmer borrows for unproductive purpose. Such as celebration of marriage, births and deaths. The problem of agricultural credit is unique, in the sense that, the prospective borrowers are to be reckoned in millions, their creditworthiness is practically nil, their needs of great urgency, their knowledge of accounting matter is small, and their economic status is low. The policy maker should aim at securing the economic and political health of the people through agricultural credit. The importance of agricultural credit in a country like India, which is essentially rural in nature hardly, needs elaboration. Economic development of the countryside hinges upon availability of credit to rural economy. The burden of indebtedness in rural India is great, and falls mainly on the households of rural working people. The exploitation of this group in the credit market is one of the most pervasive and persistent features of rural life in India.