Credit is a prerequisite for the growth of rural and agricultural sector. This paper highlights the sources of credit in rural areas both institutional and non-institutional at national and state level in Haryana using the secondary and primary data. The study elaborates that at national level during 1951 to 1991, the percentage share of institutional sources increased continuously and started declining from 2002 and also in 2013. Whereas in case of non-institutional sources, the reverse trends are observed upto 1991, its share declined and after that it is continuously increasing. In case of Haryana, percentage share of institutional sources declined and the share of non-institutional sources increased upto 1991. After this, share of institutional sources has increased and further non institutional sources have declined. The study also discusses the results of a primary survey conducted in three districts of south Haryana to assess the share and sources of rural credit of selected indebted farmer households which shows that the share of institutional sources is significantly more than non-institutional sources. The study also provides some policy suggestions in the current scenario of rural credit in India and Haryana as well.

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Keywords: Farmers, Institutional, Non-institutional Indebtedness.