Question

What are the various sources of credit in rural areas which one of them is most popular and why?

Answer 1

$\huge\mathfrak{Answer}$

• In rural areas, there are both informal sources like moneylenders, traders, relatives etc. and formal sources of credit like commercial banks and cooperative societies. Informal sources are dominant:

1.) If banks are present, it is difficult for the poor to meet the requirements of documents and collateral for a loan.

2.) Banks are not common in rural areas.

♥Hope it helpful to you mate if you satisfy then please mark me as brainlest ☺ ✌ ✌ ✌

Answer 2

ÊLLØ'!!

$\Huge{\mathfrak{\underline{\underline{answer}}}}$

•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.

THÅÑKẞ!!