An attempt has been made to study the repayment and overdues of co-operative credit in Satara district of Maharashtra. The sampling method used in the present investigation was two stage random sampling with villages as primary sampling unit and cultivators as secondary sampling unit. In all, six villages were selected. From each selected village, 5 farmers
each from small, medium and large size groups comprising of 30 farmers from each group were selected randomly. Thus, the total sample comprised of 90 farmers. The data were collected by survey method for the year 2005-06. The study concluded that the mounting of overdues, low income was reported as main reason by about 85.56 per cent farmers. More than 85 per cent farmers reported that they accrued additional income due to better use of credit but did not repay the loan. To overcome the problem of the indebtedness, the willful defaulters will have to be taken to the task and forced to repay the loans through appropriate legal action. There is a need of optimum scale of financing on the basis of timely assessment of prevailing prices. For efficient recovery of loans, special recovery unit may be created at the district or tahsil level.