The agriculture and rural development are highly interrelated. Agriculture has been considered as crucial sector to generate major proportion of employment. Productive job opportunities are to be created in rural areas through development of agriculture, irrigation facilities, rural infrastructure and promotion of village and cottage industries for rural development by providing cheaper bank loan. Most of the low-income households are not in a position to borrow at a higher rate of interest,

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... risk involved and the cost of servicing such a large number of small loans in remote and far-flung villages would necessitate the credit agencies to keep themselves at an arm's length. In an adverse situation like this, the lending agencies are generally reluctant to finance the poorer groups. Main motive of this study is to find out the main informal causes those are responsible to increase the institutional loan. In that situation bank loans should used for improving production with the help of latest technology and inputs. Present study is totally based on primary data. Considered this way, apart from production and the investment loans help to increase production and incomes. Even schemes for infrastructure development where charges are levied have become bankable propositions.