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Abstract
Finance is one of the important factors for higher agricultural productivity. Private moneylenders had been providing needful finance to this sector but the rate of interest charged by them and other conditions imposed by them ruined the peasantry in Haryana. Finance is one of the important factors for higher agricultural productivity. Private moneylenders had been providing needful finance to this sector but the rate of interest charged by them and other conditions imposed by them ruined the peasantry in Haryana. Indian government has started several policy measures in order to enhance the comprehensibility of farmers to the institutional sources of credit. As a matter of fact agriculture is being converted into a commercial venture and as such it has become more capital-intensive. Due to the peculiarities in agriculture - particularly uncertainties, small scale production, scattered operation, low return, high rate of interest and limited scope for employment - a large proportion of cultivators cannot manage from one harvest to another without recourse to borrowings. Finance is one of the important factor for higher agriculture productivity. Private moneylenders have been providing needful finance to this sector but the rate of interest charged by them and other conditions imposed by them ruined the peasantry in Haryana. To save this sector from the clutches of private moneylenders the other various financial institutions like cooperative banks, commercial banks and Grameen banks were setup. The main purpose of these institutions is to save agriculture sector from usurious money lenders.