Institutional finance plays a vital role in the development of agricultural and allied-activities in India. Provision of adequate funds on reasonable terms is an important constituent of strategy of agricultural development. Farm credit in India is characterised by dualism, i.e., institutional as well as non-institutional. Among the institutional agencies providing credit to agricultural sector, Co-operatives play a pivotal role. They are viewed as the most suitable and viable agencies for supply of agricultural credit in India.
