Rural credit and rural development

Rural development is a comprehensive term. It essentially means a plan of action for the development of areas which are lagging behind in socio-economic development. There are certain issues in rural development like human capital formation. Investment should be made in education health and technical skill development to make people more efficient and able to do work. The rural people are mainly dependent on agriculture to earn their livelihood that usually suffers from low productivity, lack of infrastructure and disguised unemployment. Therefore, efforts must me made towards development of alternative occupation through available resources. There is need for technical reforms allow the farmers to use modern techniques and methods which increase the productivity and aggregate volume of farm output. Special measures should be taken for basic facilities like infrastructure development such as electricity, irrigation, bank, credit, transportation, development of markets etc.

For Rural development huge amount of rural credit will needed to tackle poverty and to bring significant improvement in the living conditions of the weaker sections of the people emphasizing access to productive employment opportunities. This paper is related with rural credit and how rural credit can be channelizing for rural development.