Question

where credit is more important and needful in rural area

Answer 1

Co‐operatives play a very importantrole in disbursement of agricultural credit. Credit is needed both by the distribution channel as well as by the farmers. ... In India, 78 per cent of the farmers belong to the category of small and marginal farmers. They depend heavily on credit for theiragricultural operations.

Answer 2

Answer:

There is a need for credit in rural areas for the following reasons:

i. In rural areas, the main demand for credit is for crop production.

ii. Crop production involves considerable costs on seeds fertilisers, pesticides, water, electricity, repair of equipment, etc.

iii. Farmers usually take crop loans at the beginning of the season and repay the loan after harvest.

iv. Rural people also take loans for starting small business and for the marriage of their daughters.

Explanation: