Expansion Of Rural Credit Market In Assam

Abstract

Fluctuations In Agricultural Production And The Lag Associated With The Production Crops Create The Demand For Credit. In Assam Though The Formal Sources Of Credit Have Been Expanding Their Networks Over The Years The Amount Of Formal Credit Advanced By Them Is Not Adequate.  Without Flexible Terms Of Formal Credit, People Tend To Take Loans From Informal Sources. The Informal Credit Sources Through The Informational Advantage Smoothly Operate Their Functions In The Rural Areas. Although The Informal Sector Fulfills The Need Of Credit But It Is Not Desirable From The Point Of View Of Agricultural Growth. In These Circumstances, The Micro Finance Plays An Important Role In Reducing The Gap Between Demand And Supply Of Formal Credit In Rural Credit Market Of Assam. The Objective Of This Study Is To Examine The Present Status Of Formal Rural Credit Market Of Assam. The Study Is Also Focused In Analyzing The Challenges Of Formal Credit Market Of Assam. This Study Is Mainly Done On The Qualitative Basis But Some Quantitative Data Is Added To Justify The Qualitative Arguments.