Synopsis The credit is one of the important inputs for the development of economy. It is an essential ingredient for effecting changes in the scale of production and technology, but technology or innovation, will have no meaning unless the capital starved farmer is provided credit for capital investment and for meeting the need for working capital. A large proportion of marginal and small farmers have low income without savings of their own, they often depends on the source of formal and informal credit. Strengthening of the formal credit source for provision of timely and adequate credit as well as augmenting of the land base of the poor could help in poverty eradication. Micro-credit has become a major tool of economic development and is fast developing as an industry, with in own trade associations, dedicated finance thence, training and other support organisations and research.