Question

Loans from Cooperatives
Besides banks, the other major source of cheap credit in rural areas are the cooperative societies (or cooperatives). Members of a cooperative
pool their resources for cooperation in certain areas. There are several types of cooperatives possible such as farmers cooperatives, weavers
cooperatives, industrial workers cooperatives, etc. Krishak
Cooperative 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 the bank. These funds are used to provide loans to members.
Once these loans are repaid, another round of lending can take place.
Krishak Cooperative 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.
a) List the various sources of credit in Sonpur.
b) Mention the name of the cooperative societies operating in Sonpur.
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Answer 1

Answer:

The various sources of credit in Sonpur are as follow:

Explanation:

(i) Agricultural traders.

(ii) Cooperative societies.

(iii) Moneylenders.

(iv) Commercial banks.

(v) Relative and friends, etc.

There are many cooperatives that function within the village, Sonpur.

These cooperatives work to provide loans to the members for agricultural cultivation and fishery loans, construction loans, and a number of other types of loans for the ease of members.