INTRODUCTION

The Indian economy is the second fastest growing

economy in the world. Majority of the population in India
resides in rural areas. Thus development of rural India is a
key step towards economic development for a country
like ours.
Credit is one of the very important inputs for economic
development .Timely availability of credit at an
affordable cost has a big role to play in further growth and
progress. Proper access to finance by the rural people is a
prerequisite.
Extension of credit is one of the major activities of banks
and financial institution. Credit represents the bulk of the
bank and financial institution’s asset portfolio. The
quality of loans held by banks and financial institutions is
a critical indicator of the health of financial system. If the
assets are of high quality, credit risk is less. Thus, credit
growth is one of the drivers of economic growth, non
performing assets is a disaster to the Indian Economy
OBJECTIVE
 To know the various policies related to loan
 To know the importance of credit in various sectors
of the economy
 To know the reasons for maintaining priority lending
as per RBI
 To know how banks review loans and analyse the
credit risk associated with it
 Need for financial inclusion
 To know how change in credit policies impact credit
(business correspondent model, no frill accounts,
kiosks banking)