Question

Why should credit at reasinable rate from the banks and co operatives be available for all answer in 3 points

Answer 1

i). Inform credit tries to exploit the poor farmers and workers by charging a very high rate of interest on loans and imposing unreasonable terms of credit.ii). At present rich households avail the benefits of formal credit and poor have to depend on the informal sources due to some weak point like absence of collateral security etc.iii). Therefore it should be ensured that formal credit should provide credit at reasonable rates to all and especially poor ones to help them fulfill their needs.

do your exams well.all the best