IJSRP, Volume 9, Issue 7, July 2019 Edition [ISSN 2250-3153]
Chandrama Goswami, Sanghamitra Hazarika
Institutional credit is essential for economic development. It is considered as a pre condition for macroeconomic stability and monetary policy execution. It is also a key element of agricultural modernisation and increased crop production; it makes production possible even for those who do not possess their own funds for it. In India, along with institutional credit, a parallel system of non institutional credit delivery is highly prevalent in the rural areas. The interest rates are very high in this system.