Agriculture is the main source of the Indian economy in the last 75 years. The adoption of new technology and HYV seeds has increased productivity of crops considerably. It resulted in increasing in the demand for modern inputs like seeds, fertilizers, pesticides, insectidies, labour charges, irrigation charges and other charges. In most of the cases, the Indian farmers are not able to meet the expenditure, because of the low size of the holdings, low productivity, low income and high level of consumption for domestic needs, with the backdrop of all these issues, they borrow loans from institutional agencies and non-institutional agencies to increase their productivity and income level. Multistage random sampling method has been followed to select 300 sample borrowers for the study. For the present study, three mandals selected in Kadapa District and two villages from each mandal selected. six villages were selected randomly, out of which 300 sample barrowers were selected for the study. The main object of the study is the performance of financial institutions in the district, repayment performance of the barrowers and suggested measures for making the recovery of over dues from the barrowers. The present study is based on an exclusive interview method. Schedules has been prepared and canvassed for the collection of data. The collected data were analysed with appropriate statistical tools like with percentages and averages.