India’s ground level credit disbursed to the agriculture sector has seen a significant increase, reaching Rs 32.50 lakh crore for FY 2025-26, a substantial rise from Rs 8 lakh crore in FY 2014–15. The National Bank for Agriculture and Rural Development (NABARD) supports banks with refinance to enhance ground level credit in agriculture and allied sectors.
The rural credit ecosystem has been growing steadily, expanding by 13% annually from FY 2014-15 to FY 2023-24. NABARD’s Rural Economic Conditions and Sentiments Survey in May 2026 revealed that formal rural finance has extended its reach, with a notable increase in consumption levels among rural households.
The formal credit access has shown significant growth, with 51% of households relying solely on formal sources and over 27% utilizing both institutional and non-institutional channels. The presence of scheduled commercial bank branches in rural areas has also increased, playing a crucial role in rural credit delivery.
Cooperative banks and primary agricultural credit societies have been instrumental in promoting banking habits among the poor in remote areas, contributing to the expansion of institutional credit. The Government’s policy framework for rural credit includes measures like Priority Sector Lending (PSL) to ensure uninterrupted credit flow for rural development initiatives.
