Question

what typeof rural credit is there apart from formal and informal ?​

Answer 1

rural credit exists apart from formal and informal sources Iis in form of cooperatives and SHGs i.e Self Help Groups

Answer 2

Answer:

# Co-Operative Credit Societies:

The co­operative societies are supposed to be the cheap­est and most important source of rural credit. When co-operatives were first set up it was thought that they would be able to meet almost the entire credit needs of numerous small and me­dium farmers.

As a result, the moneylenders would recede to the background. But this has not really happened. Till 1950-51 they played a passive role in the area of rural credit.

#Land devel­opment bank (formerly known as land mortgage banks) mainly provide long-term loans to farmers against the mortgage of their lands at low rates of interest over a period of 15 to 20 years. Farmers find borrowing from such banks attractive if costly land improvement programmes (such as digging or deepening of wells) are to be undertaken, or if additional land is to be acquired through outright purchase, or if previous debts have to be repaid.

Some progress has, of course, been made by land development banks in recent years, but their contribution is still insignificant. Hence they have not been able to touch the root of the rural credit problem. In fact, most farmers are not even aware of the existence or the usefulness of such banks. But the total number of such banks set up by the State Governments and primary banks increased steadily over the entire plan period.

# 3. Commercial Banks:

Before nationalisa­tion of top 14 commercial banks in June 1969, they had an urban bias. They were mainly accept­ing deposits from the urban people and making loans to trade and industry. Agriculture and rural industries were neglected by them. Since agricul­ture by its very nature was a risky venture, private commercial banks turned away from rural areas.

#Regional Rural Banks:

In 1975, the Gov­ernment set up a network of regional rural banks to look into the special needs of small and mar­ginal farmers, landless workers, rural artisans and the rural poor in general. The unique feature of the 196 RRBs operating since September 1990 is that they cater exclusively to the weaker sections of the rural community through nearly 14,800 branches spread over India.

# 5. The Government:

The Government has also provided short-term and long-term loans to farmers in times of emergency such as floods or famine. Such loans are known as Taccavi loans. Such loans are offered at a concessional rate of interest (6%) and the mode of repayment is also very convenient. It can be repaid in several installments at the time of payment of land tax. How­ever, such loans have not assumed significance over the years.

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