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Abstract
Agriculture farms are one of the backbones of Indian economy. More than 75 per cent of the population is economically dependent on it. As agriculture now accounts for only 14 per cent of Gross Domestic Product (GDP), it is still the main source of livelihood for the majority of the rural population. Since the breakthrough in agricultural production, technology, farm credit comprising of about 60 per cent short term credit and 40 percent term credit played crucial role in stepping up agricultural production and employment in India. Finance is required by farmers not only for the production and marketing of crops but also to keep a stagnant agricultural economy alive. Most Indian farmers live near the margin of starvation. A bad monsoon, a poor harvest, an accident or illness in the family forces him to approach the money lenders for a loan. Therefore, Finance may