explain any 3 possible reasons that people might apply for loans in rural areas
Answers
These are the three reasons that people might apply for loans in rural areas such as for proper education, if they do farming activities then to buy agricultural resources, and for self employment.
You could get perfect loan option that has been carried out by the proper reasons and apply accordingly.
In order to improve credit situation in India, it is important to provide cheap loans and credit schemes ot rural households. To set up more banks in rural remote areas, making people ware about cooperatives, SHG's. These sources must extend their services in rural areas and try to reach out to all. Providing loans with reasonable interest rate, generating greater awareness among people about formal sources so as to reduce their dependence on informal sector. It will also prevent people from getting exploited through borrowings from informal sources. To serve as building blocks for rural households. This will help people to start up their small business, or trade in certain goods. It can also help farmers to expand cultivation, to diversify their production. People can also set up small scale industries. It can certainly be a an engine of growth.