Question

What are the various sources of credit in rural areas? Which one of them is the most dominant source of credit and why?(Delhi - 2013)

Answer 1

Explanation:

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.Ja