In today's global landscape marked by fierce competition, sustainable rural economic development stands as a critical imperative for India, a nation predominantly rural in character. With 70% of its population residing in rural areas, India's journey towards becoming a developed nation hinges upon the advancement of this sector. Recognized as indispensable for national development and social welfare, rural development addresses the pressing need for capital in rural communities, where access to credit remains limited. Capital infusion can catalyse agricultural and allied activities such as poultry farming, piggery, dairy farming, beekeeping, blacksmithing, and small-scale entrepreneurship, empowering individuals to seize opportunities arising from sustainable economic development. The establishment of Regional Rural Banks (RRBs) on October 2, 1975, aimed to address this credit gap in rural areas. Manipur Rural Bank (MRB1), inaugurated on May 28, 1981, furthered this objective within the Manipur State, operating through 27 branches strategically located across rural, semi-urban, and urban regions. MRB1 not only extends financial assistance to priority and non-priority sectors but also prioritizes financial literacy among Manipur's populace. This paper conducts a comparative analysis between Manipur Rural Bank and Mizoram Rural Bank (MRB2), examining their loan disbursement strategies across priority and non-priority sectors.