Question

why do we need to expand formal sources of credit in india​

Answer 1

Answer:

We need formal sources of credit in order to reduce the dependence of farmers on informal sources of credit like money lenders. To reduce the higher risk associated with informal sources of credit because of fluctuating terms and conditions. To avail cheaper credit to farmers in rural areas.

Answer 2

ᾰℵṧωḙԻ :-

• So that poor people could also afford credit at low interest.
• It will encourage people to start new businesses without being trapped in debt.
• It will help in expanding the trade and commerce.
• It will help in generating more employment opportunities.
• It will help farmers to invest money in modern technologies.