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Important policy implications emerging from the study are proper and adequate disbursement of loan amount to farmers in the study area. A check on corrupt practice in order to ensure lower cost of borrowing and reduction in time required for processing of loan. Removing the institution and structural bottleneck for smooth functional of agricultural institutional credit in the said study area. The simple but comprehensive record book should be issued to every farmer containing information on land records and institutional transaction to banks and other institutions for availing the necessary services. Computerisation of land record by the state government will be facilitate institutional lending. Application form should be made simple and in the local language. All backs should fix one day in a week to deal with and help the farmers in filling up of the application from and completing the form and completing the formalities. To minimize the time gap between date of applying for loan and it's disbursement, proper maintenance of records with respect to receipt of applications and disbursement of loan should be made mandatory.