Question

what are the various sources of credit in rural areas ? which one of them is the most dominant source of credit and why ?

Answer 1

The various sources of credit are formal like banks and informal like village money lenders..
informal is dominant because.
1. Rural people wouldn't understand or prefer complicated paper work required in banks.
2. They mayn't have the collateral to submit to banks.
3. Banks mayn't be available in rural areas.
4. The aren't interested or understand the functioning of banks.
5. Informal sources like moneylenders in rural areas provide loan to people even if the previous loan is unpaid whereas banks don't.
6. They get loan quickly and easily.

Answer 2

1. landlord
2. Frd
3. trader's
4. (shg) self help groups