This paper is an attempt to elucidate how commercial banks have worked as facilitators and quasi-facilitators in providing safer credit to farmers and how they became the archetypes of entrusted safer credit to agricultural activities and catalyst in their growth. This research uses primary data from three mandis in the periphery of Delhi where deductive reasoning is used to carry out a hybrid research comprising elements of both fundamental research to understand problems faced by Indian farmers and applied research to find solutions to the immediate problems. The paper confers how loans are being put to unproductive uses by farmers which ultimately make their debt-obligation situation much more adverse leading them to relinquish their debt-obligations towards banks which ultimately affect the monetary mechanisms of the country. The study suggests more involvement of scheduled commercial banks as mediator between farmers and commission agents in the mandis.
