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Synopsis In order to ensure a smooth flow of credit to agriculture, the growth of overdues needs to be curbed. In recent years, the problem of overdues in credit institution has assumed serious proportions. To check this growth, it is necessary that lending institutions adopt a cautious lending policy. They must be circumspect in giving credit to all kinds of borrowers. The present book focuses on the problem of overdues at it exists in the state of Himachal Praedesh. It investigates the factors affecting advancement and utilization of credit. The specific objectives of the study are: to study the temporal position of overdues of the United Commercial Bank; to find out the factors responsible for overdues position of farmers; and to suggest measures for making the recovery of overdues easy. After extensive date analysis, the authors have identified a number of characteristics which distinguish borrowers into defaulters and non defaulters. These characteristics include size of holdings, operational size, percentage of area under HYVs of the total operated area, per hectare fertilizers used in rupees, and working capital in rupees per hectare. In the end, the authors have suggested a few measures that can be adopted for smooth and easy recovery of loans or overdues, as the case may be. The work yields extensive comparative data. It will be of great use to the economic theorists and the policy makers.