Features of institutional credit are as follows :
(i) Institutional credit is more important than non-institutional credit.
(ii) After nationalisation in 1969, banks are playing a very important role in household rural credit. In this regard co-operative societies are lagging behind.
(iii) Institutional credit agencies are growing rapidly. Therefore, rural households for the credit are shifting towards these institutional
agencies from non-institutional agencies.
(iv) The interest on non-institutional credit is
always higher in comparison to institutional credit. As a result, the burden of interest on the farmers tend to decline.