There are five major sources of rural credit in India. They are: i. Co-Operative Credit Societies ii. Land Development Banks iii. Commercial Banks iv. Regional Rural Banks v. The Government. Due to extension of institutional credit facilities since 1950-51 the monopoly position of the village moneylender has been challenged. The institutional sources meet about 80% of the rural credit needs. Due to progressive institutionalization of credit, private sources now meet barely 20% of the short and medium-term credit needs of the farmers or rural peoples.