Question

give 10 points to show why banks and cooperative societies should increase their lending in rural areas
pls ans​

Answer 1

Answer:

(i) Dependence on informal sources of credit reduces.

(ii) To provide more loan facilities to rural households.

(iii) To save rural people from exploitation.

(iv) It is important that the formal credit is distributed more equally so that the poor can benefit from the cheaper loans.

(v) The bank and the cooperative societies have to increase the lending facilities to improve the livelihood of the people in the rural areas.

Answer 2

Answer:

It is necessary for the banks and cooperative society to increase their lending facilities in rural areas because the money lender who lend money are charging a large amount of interest on the loan and it was very difficult for the rural people to pay the interest