Question

Why is it necessary for the banks and cooperative societies to increase their lending facilities in rural areas? Explain. 

Answer 1

because it help the poor peasants farmers recover or not to fall in dept trap
they are usually trapped in dept trap which is the main reason for increasing farmer suicides if the banks and co operatives increase the loan facilities with low interest rates they can live their life they will have their own land
mostly rural people is rejected because of not having collateral.
so they approach the money lenders with high interest rate when the interest rate increases they are unable to pay then their collateral or property is owned by the lenders. here an unfair method is being used
PLZZ BRAINLIEST

Answer 2

☢it is necessary for the banks and cooperative societies to increase their lending facilities in rural areas because of the following reasons;

➊. India is an agricultural country so the people in rural areas deserve a special attention.hence, the banks and cooperative society should help the needy people in rural areas.

➋. mostly the people in rural areas are illiterate and hence they can be easily cheated by the money lenders.

➌. most loans from informal lenders carry a very high interest rate and do little to increase the income of the borrowers.hence, it is necessary that banks and cooperative increase their lending particularly in rural areas, show that the dependence on informal sources of credit reduces.

➍. only the banks and cooperative societies can provide loans to the rural household at cheap rates which can easily save them from the clutches of the money lenders.

➎. most of the people in urban areas depend upon the rural people for their food requirements, etc. and, their welfare is most important. hence the banks and cooperative societies should provide more facilities to the rural households in the matter of advancing loan.