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The First chapter deals with introduction of the study and itincludes background of the study, objectives of the study, hypothesesand research methodology adopted for the study. The credit is anessential input in the course of growth of the any country. Forhistorical reasons, Indian farming community unsuccessful to makeenormous investments in agriculture. There is a proverb that Indianfarmer is born in debt, lives in debt, and dies in debt. In order to easethe problems of farming community, Indian Cooperative Societies Actwas approved in 1904. A number of credit cooperatives were startedunder this Act which provided institutional support to farmers forshort, medium and long term purposes. Consequently, tiers at stateand district levels were too conceived to strengthen these creditcooperatives. Apart from these cooperative institutions,nationalization of commercial banks, and introduction of regional ruralbanks also helped in increasing credit supply to the farmers of thecountry.