T Microfinance programs are a great way for low income people in rural areas to start their own income generating activities and makes their ends meet. Since, borrowing itself is a big challenge, there will always be a challenge in everything doing with that money.Borrowing for Agricultural and Non agricultural activities ultimate objective is to make at least an income which meets the repayment of the borrowed capital without any additional credit. Gestational period payments , complication in sale of products due to competition of branded products, limitation in area of marketing due to lack of storage and transportation ,loss due to technical inefficiency and underutilisation of capacity etc are the main challenges faced by agricultural and non agricultural microfinance borrowers

Cross borrowing is the ability of a beneficiary to borrow from different lenders simultaneously or borrows from one lender to make repayment to another debt.The commercialisation of the microfinance sector leads to an increased competition for attaining clients and strict objective to seek profitability, that results in more than one Microfinance Institution (MFI) operating in an area. The rapid growth among microfinance sector offers its beneficiaries a scope to borrow from multiple sources, with easy formalities, within short period of time.While various studies acknowledged that the multiple memberships of credit sources among rural clients makes repayment difficulties and collaboration of total economic sustainability of clients. This paper tries to analyse and enlist some personal, entrepreneurial and microfinance provider related factors which leads them to simultaneous multiple accessing of credit from various sources. The paper concludes that the adverse income shocks in general economic conditions of the client, improper investment of fund, low return from the investment, new commercialised lending pattern of MFIs are the major reasons of simultaneous multiple borrowing trend among microfinance clients.