An Overview of Rural Credit through Public Sector Banks in Karnataka- A Study of State Bank of India in Hassan District

Abstract

Credit is not only one of the critical inputs in agriculture but also an effective means of overall development of rural economy. A number of agencies such as co-operatives, regional rural banks, commercial banks, self- help groups and a well spread informal credits out lets together constitutes the Indian rural credit delivery system. Rural credit is any type of lending program or line of credit that is aimed at impacting a rural population in some manner. There are banks and co operatives that specialize in extending these types of credit to farmers and others engaged in the agricultural task. Rural credit seen has undergone a major transformation the quality of cultivator’s credit has improved. It has become more and more production oriented and institution biased correspondingly. Individuals have access to rural credit options under certain circumstances. For example, novice farmers and ranchers may be granted a loan or line of credit to manage the acquisition and upgraded of an existing farm operation or the establishment of a new one. Farmers and ranches are sometimes extended credit of this type when some sort of natural disaster has reined crops and threatens the ongoing operation of the branch or farm.