In the last two decades nearly 1,83,000 landless labourers, marginal and small farmers have committed suicides due to indebtedness in India. The most concerning fact is that cases of farmer suicides due to indebtedness were reported from states like Maharashtra, Andhra Pradesh, Karnataka, Kerala and Punjab which were considered to be agriculture prosperous states. The credit acquired for healthcare facilities was identified as one of the major component of indebtedness among marginal and small farmers in recent studies. Although health have been subject of the state since independence and the states were required to play a leading role in determining priorities and financing for health services to its people. But medical facilities through government health services in rural areas are inadequate, non qualitative and not available at times. The ineffectiveness of the government healthcare sector is gradually driving poor people to seek help of the private sector for minimal healthcare facilities,and th subsequent financial burden of private healthcare services is responsible for more credit acquisition by these underprivileged sections of the society.