why do the rural people approach more to moneylendrs than bank for loan??
Answers
Answer:
PURPOSE
The purpose of this chapter is to examine the particular features of rural financial services that need to be considered in deciding what forms of, and approaches to, decentralization may be appropriate.
KEY POINTS
Credit is a private good but the fact that it involves an exchange of access to resources now for an undertaking to repay in the future makes it different to other services. This generates screening, incentives and enforcement problems for those supplying loans.
Centralized and directed credit provision was based on the misconceptions that the priority need for rural borrowers was to finance agricultural production and that farmers were too poor to pay market rates for credit.
Answer:
Empowering rural people offers long-lasting and life-changing outcomes. Above all, rural communities have the potential for self-development and dignity. Therefore, if given the right opportunities, we believe they possess the power to make permanent changes to quality of life.