Institutional finance is necessary for rural development. It is the framework of rural development. It is seen that many Governmental schemes launched by the Government for up-liftment of rural poor to achieve the target of employment, are absurd due to delay in implementation and lack of proper monitoring. Rural poor only have meager income for their survival. In these institutions there is necessity of gainful employment of generation having keen interest to serve the rural poor. This will help in expanding institutions’ branches in rural and far flung areas, in spite of the problems at credit agency level. Udham Singh Nagar District seems to have better credit delivery system. This study attempts to examine the impact of institutional credit in the rural development of Udham Singh Nagar District.

Keywords: Institutional finance; rural development; rural poors.