Question

describe four major sources of credit for rural household in India (5 marks )

Answer 1

Co-Operative Credit Societies:

The co­operative societies are supposed to be the cheap­est and most important source of rural credit. 

Land Development Banks:

Land devel­opment bank (formerly known as land mortgage banks) mainly provide long-term loans to farmers against the mortgage of their lands at low rates of interest over a period of 15 to 20 years. 
Commercial Banks:

Before nationalisa­tion of top 14 commercial banks in June 1969, they had an urban bias. They were mainly accept­ing deposits from the urban people and making loans to trade and industry. 

Answer 2

There are various sources of credit in rural areas are:relatives,friends,money lenders and traders.Most dominant source of credit is money lenders.