Cooperative banks and SHGs boost formal credit to Indian farmers

A recent rural economic survey by NABARD indicates that 77.2 percent of rural households reported higher consumption levels, signalling rising purchasing power and steady demand. Formal credit penetration has widened, with about 51 percent of families now borrowing exclusively from formal sources, while more than 27 percent draw from both institutional and informal channels. The number of scheduled commercial bank branches in rural areas grew from 41,464 in 2014 to 56,193 by July 2025, a rise of over 35 percent, strengthening loan distribution networks. Regional Rural Banks operate a network of over 22,000 branches across 700 districts, and cooperative banks—including 1,458 urban, 34 state, and 352 district central cooperatives—play a critical role in extending credit to remote and low‑income communities.