Bank finance for rural industrialisation has been assigned top priority to bring a transition in the development of rural areas through the promotion of the small scale industrial units in rural areas. It has been pursued to increase the entrepreneurial abilities of rural people and to facilitate the utilization of local resources and skills. The rapid strides in rural Industrialisation necessitate the deployment of bank credit for developing small scale industrial units in rural areas. The requirement of fixed and working capital of small scale units are met according to the priority of commercial banks. The increasing bank credit accelerates the pace of rural industrialisation. However, small scale entrepreneurs face the problem of inadequate credit and, thereby, rely on non-institutional sources. So, the transaction cost is higher. The financial issues affect the quickening of the process of rural industrialisation. In this study, an attempt is made to examine the bank finance for industrialisation in Kadapa district.
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