Question

Highlight the contribution of the Krishak Cooperative societies to overcome the problem of credit in rural areas?

Answer 1

Answer:

Krishak banks are a Cooperative bank of villagers (here Sonapur) that provides loans for the purchase of agricultural implements, agricultural trades, fishery loans or house loans etc. It has more than 2500 members and works in the following steps:

First it accepts deposits from its members, then with these deposits as collateral, it obtains large amount of loan from the commercial / government banks.

These funds are used to provide loans to members.

Once these loans are repaid, another round of lending takes place.

Answer 2

Answer:

HERE IS YOUR ANSWER DEAR...

Explanation:

Besides banks the other major source of cheap credit in rural areas are the cooperative societies. The members of a cooperative pool their resources for cooperation in certain areas.

Krishak Cooperatives functions in a village not very far away from Sonpur.

It has 2300 farmers as members. It accepts deposits from its members.

With these deposits as collateral, the cooperative has obtained a large loan from bank.

These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place.

Krishak cooperatives provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses