WRITE A SHORT NOTE ON LOANS FROM COOPERATIVES
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Besides banks, the other major source of cheap credit in rural areas is the cooperative societies (or cooperatives). Members of a cooperative pool their resources for cooperation in certain areas. There are several types of cooperatives, namely:- Farmers cooperatives Weavers cooperatives Industrial workers cooperative Let us take the example of Krishak Cooperative. Krishak Cooperative functions in a village not very far away from Sonpur. It has 2300 farmers as members. The Cooperative accepts deposits from its members. Using the deposit as collateral, the Cooperative obtains a large loan from the bank. The loan amount received from the bank is used as funds to provide loans to the members. Once the members repay the loans the amount is repaid to the bank and a fresh loan is taken from the bank. The Cooperative provides loans to its members for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.
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Rahulraj3210Virtuoso
Loans from Cooperatives
Besides banks, the other major source of cheap credit in rural areas is the cooperative societies (or cooperatives). Members of a cooperative pool their resources for cooperation in certain areas. There are several types of cooperatives, namely:- Farmers cooperatives Weavers cooperatives Industrial workers cooperative Let us take the example of Krishak Cooperative. Krishak Cooperative functions in a village not very far away from Sonpur. It has 2300 farmers as members. The Cooperative accepts deposits from its members. Using the deposit as collateral, the Cooperative obtains a large loan from the bank. The loan amount received from the bank is used as funds to provide loans to the members. Once the members repay the loans the amount is repaid to the bank and a fresh loan is taken from the bank. The Cooperative provides loans to its members for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.