Debt plays an important role in any country, state or individual development. In many activities of our life, there are many such deals where debt is used in some form or the other. By loan we mean an agreement where the lender provides money, goods or services to the borrower and in return takes a promise from the borrower to pay. The loan meets the working capital requirement of the producer. It helps him to meet the working expenses of production and timely completion of production. Through this he is able to increase his income. In this situation, credit plays an important and positive role.