What are Types and problems of rural credit?
Answers
Explanation:
Problems of Rural Credit in India:
1. Insufficiency:
In spite of expansion of rural credit structure, the volume of rural credit in the country is still insufficient as compared to its growing requirement arising out of increase in prices of agricultural inputs.
2. Inadequate Amount of Sanction:
The amount of loan sanctioned to the farmers by the agencies is also very much inadequate for meeting their different aspects of agricultural operations.
3. Lesser Attention of Poor Farmers:
Rural credit agencies and its schemes have failed to meet the needs of the small and marginal farmers.
4. Growing .The problem of over-dues in agricultural credit continues to be an area of concern.
5. Inadequate Institutional Coverage:
In India, the institutional credit arrangement continues to be inadequate as compared to its growing needs.
6. Red Tapism:
Institutional agricultural-credit is subjected to red-tapism.