Give two reasons various sources of credit in rural areas?
Answers
Answer:
There are various sources of credit in rural areas are:relatives,friends,money lenders and traders. Most dominant source of credit is money lenders. It is because small farmers are poor, illiterate and cannot fulfill the conditions of co-laterals. The rural economy is way more smaller in scale than the urban economy.
Answer:
There are various sources of credit in rural areas are:relatives,friends,money lenders and traders. Most dominant source of credit is money lenders. It is because small farmers are poor, illiterate and cannot fulfill the conditions of co-laterals. The rural economy is way more smaller in scale than the urban economy.
There is a need for credit in rural areas because the people do not have sufficient capital to invest in agricultural sector.Such a credit will fulfil their requirements and help them to invest in non-agricultural sector as well.
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