What Are The Pre-requisites Of Successful Rural Credit Programme?

Following are the pre-requisites of a successful Rural Credit Programme.
Character of the Borrower:
The lender should keep in view the reputation and purpose of borrowing. If one farmer is honest and capable to use the loan for productive purpose then he must be lended.
Appointment of Credit Officer:
The lending agency should appoint the credit officer who has rural background. If a credit officer belongs to the farmer's family then he can understand the problems of the farmers in better way.

Regular Relationship:
The relationship between the borrowers and credit officer should be regular. It is very useful in obtaining and repaying the loan. If the farmers have no contact with the banks then they will be unable to avail the credit facility on low rate of interest.
Individual Responsibility:
The loans should be advanced to an individual farmer and two persons should give guarantee, if any person delays then the other two persons will also ask him for the repayment because they will be also responsible.
Credit in Kind:
Credit should be provided in the shape of kind and not in the shape of cash. For example if we advance the loan in the shape of seeds or fertilizer to the farmer then he will be unable to use this loan for other purpose.