Following points highlight the importance of credit in rural development :
(i) Credit is required by the farmers to meet their personal needs because the gestation period between crop sowing and realisation of income after production is quite long.
(ii) Credit is required by the farmers to make investment on seeds) fertilisers, implements, etc.
(iii) Credit is required by the non-farm sectors also such as cottage and small scale industries.
(iv) Credit is required by the rural people for self employment.