Borrowers’ attitude towards the priority sector loan in Thiruvarur District-An analysis

Bank nationalization is purely meant for bank service in the rural areas all over the country. The prompt service to the priority sector strengthens the socioeconomic status of the people and development in the field of priority sector. The researcher has selected two sector agriculture and Small Scale Industries for this study. Both agriculture and small scale sector have played a very important role in the socio-economic development of the country during the past 50 years. They have significantly contributed to the overall growth in terms of the Gross Domestic Product (GDP), employment generation and exports. The development in priority sector is an indicator of the growth in rural areas. The overall economic growth of the rural population depends on the lending performance of commercial banks in priority sector. Priority sector is one of the turning points of the society and the economy of the country. One of the major objectives of bank nationalization is to support all kinds of borrowers in the country without any deviation. The concept of priority is to ensure the credit viability to the neglected sectors like agriculture, small scale industries and other allied activities.