Question

What are The Formal and informal sources of credit In Uttar Pradesh, Arunachal Pradesh and Meghalya ?​

Answer 1

This source of credit is the most economical and important source of rural credit. It was set up with the aim of facilitating the complete credit needs for small and me­dium farmers. Co-operative Credit Societies progressed steadily after a few years for inception. They started supporting the farmers in a significant way with short-term loans issued by Primary Agri­cultural Credit Societies (PACs), which progressed from ₹305 crores in 1965-66 to ₹5,200 crores in 1999-00. At the same time, the loans granted raised from ₹37 crores to ₹2,100 crores. However, the co-operatives could not meet the credit needs completely, so the moneylenders kept on controlling the rural economic markets.