Question

why is it necessary for the banks and cooperative society to increase their lending facilities in rural areas ?explain

Answer 1

$hey \: dear \: here \: is \: your \: answer$

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☢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.


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$hope \: this \: helps \: u \: dear$
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Answer 2

Hey mate!

Here's your answer!!
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➨ It is necessary for the banks and cooperative society to increase their lending facilities in rural areas because the money lender who lend money are charging a large amount of interest on the loan and it was very difficult for the rural people to pay the interest. All their earning was spent in paying interests. Hence, the banks and cooperative society can provide loan at low interest rate which enables the rural people to avoid such situations.

➨ Moreover, it is important to improve the credit system in India, and for this, it is important to provide cheap loans and credit policies in rural areas.

➨ This thing will help the people to start their own small business or they can also get engaged in other non farming activities.

➨ If this happens, people of rural areas will not get exploited by paying high interests and this can bring about some change in the India's economic growth too.
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