Sontakke Rajratna Laxmanrao,

ABSTRACT

One of the major problems of rural areas is rural indebtedness which is quite widespread. One of the features of rural debt is that there is a conspicuous absence of institutional credit. Private agencies-like moneylenders, landlords, and indigenous bankers-are still active. The provision of institutional credit on a priority basis would go a long way towards liquidating rural indebtedness. The present paper indicates some suggestions to overcome the existing status of rural indebtedness and suggest measures for improvements. The findings of the study suggest that commercial banks, co-operative banks and regional rural banks are expected to provide financial assistance rigorously and frequently to improve the people in rural areas. Key words: Rural, Agriculture, Debt, Develapment.