In India, rural development is contemplated as a prerequisite for fastening the pace of economic development and the welfare of the common masses. Rural development environs all the objectives of advancement and amelioration of the overall quality of the rural life through the provision of minimum needs and livelihood, adequate development of manpower resources, and infrastructural facilities. Thus, the present paper makes an attempt to analyze the need and the importance of credit for rural households. The detailed analysis of factors that highlight the role of rural credit and its contribution towards enriching the economy in rural areas has also been discussed here.