Abstract:
In this paper we will discuss the of rural credit scenario in India. The institutional credit flow to the agricultural sector increased a lot. The government started few credit schemes for the farmers. We will explain these in detail with the help of some statistics.The flow of institutional agricultural credit in the rural areas has been increasing over the last six or seven years. The credit flow was slightly less in December 2004 than the previous year. The institutional credit to agriculture given by many banks increased slowly during 2006 - 2007.
The flow of agency-wise share of credit to agriculture increases which highlighted on the fact that the Commercial Banks are responsible for the maximum percentage of share (61%). The Cooperative Banks (28 %) and Regional Rural Banks (11%) come after the Commercial Banks.
In spite of the above mentioned fact, co-operative banks' share in the flow of credit to agriculture has been decreasing over the last two or three years which shows that bank reform is absolutely there for the asking. However, several initiatives, for example, providing credit facilities to the tenant farmers, had been taken by the government in 2004 to accelerate the flow of credit.
Kisan Credit Scheme:
During 1998-99, a new credit card scheme, named as The Kisan Credit Card Scheme, for the for the farmers was introduced. Through this scheme, more than 435 lakh credit cards had been issued. In 2004, the total sanctioned amount of cumulative credit was Rs 1,11,459 crores. The aim of this scheme was to provide corp loan to the farmers.Statistics:
Table I: Year Wise Contribution (Rupee) of Institutional Credit by Commercial Banks
| 2000-01 | 2001-2002 | 2002-2003 | 2003-2004 | 2004-2005 |
| 278,07 | 33,587 | 41,047 | 52,441 | 52,038 |
Table II: Year Wise Percentage Increase In The Flow of Institutional Agricultural Credit
| 1999-2000 | 2000-2001 | 2001-2002 | 2002-2003 | 2003-2004 |
| 26 | 14 | 17 | 14 | 22 |
