Question

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

Answer 1

hyy..
here is ur answer....

poor people and worker get much of the loans from the informal sector which is not only exploitative but also charged is very high interest rate. these make the poor people and worker to fall back in poverty.

the measures to make formal sector loans beneficial for Poor farmer and workers are:-

1. the formal sector Like bank and cooperative should lead more to poor people and worker particularly in rural areas.

2. the formal sector should provide cheap and affordable credit.

3. the formal sector should ensure that every needy person receive loan.

4. by providing linkage between self help groups and bank, sector of credit can be increased.

5. there should be more numbers of cooperatives and banks in rural areas.

Hope it helps
thanks..