Why is it necessary to increans a large number of bank mainly in rural areas ? explain
Answers
Explanation:
Most loans from informal lenders carry a very high interest rate and do Iitle to increase the income of the borrowers. Thus, it is necessary that banks and cooperatives increase their lending particularly in the rural areas, so that the dependence of the poor on informal sources of credit reduces.
Answer:
Explanation:
The loan requirement in rural areas is mainly for the purpose of agriculture. The money is required for availing the equipment required for irrigation, buying seeds and keeping labor to perform different tasks.
Most loan lenders give loan but charge huge interest on it. This becomes very difficult for the borrowers to pay that loan. Thus if the government banks increase in the rural areas the loan facilities will be fulfilled on small interest rates.