Question

Suggest some ways to increase formal source of credit in india? Please I need it urgently!! Thanks!

Answer 1

The formal sector still meets only about half of the total credit needs of the rural people. The remaining credit needs are met from informal sources. Most loans from informal lenders carry a very high interest. The formal sources of credit for lending need to expand their operations particularly in rural areas, so that the dependence, on informal sources of credit reduces. hope it will help u

Answer 2

1. The numbers of Regional Rural Banks should be increased.
2. The government should provide short term and long term loan at the time of emergency like flood or famine.
3. The number of land development bank should be increased.

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