Agricultural Economics Research Review

The study has analysed the changes in structure of rural credit delivery and inclusiveness of rural credit flow across states and social groups, along with identification of factors that influence the choice of credit source. The study is based on the unit level data of Debt and Investment Survey carried out by NSSO during 1992 (48^th round), 2003 (59^th round) and 2013 (70^th round). The structure of credit system has been assessed in terms of access of rural households to different credit outlets, share of formal credit institutions, availability of credit, and interest rate. The determinants of rural households’ choice for credit sources have also been studied. The study has found that the structure of credit market has changed over time and the share of institutional credit has increased. The initiatives taken by the government have paid off and the flow of institutional credit to rural areas has increased significantly even in real terms. The indicators of financial inclusion have shown a sign of improvement. However, regional disparity and presence of informal agencies in the disbursement of rural credit is still persistent. Rural households’ access to institutional credit is influenced by a number of socio-economic, institutional and policy factors. In our analysis, the education, caste affiliation, gender and assets ownership have been found to influence the rural households’ access to institutional credit significantly. A concerted effort and appropriate policy reform are required to make rural households’ access to institutional credit neutral to caste, class and regions.