Question

Write a note on credit.

Answer 1

1. Farmers avail credit during monsoons for buying seeds, agricultural input, and other expenses.
2. Traders and small entrepreneurs need credit for their needs.
3. Even large industries receive credit to take up their new projects.
4. Credit is available from:
   1. Formal financial institutions like nationalized and private banks and cooperative banks
   2. Informal financial institutions
   3. Microcredit is received through Self Help Groups (SHG).
5. As far as nationalized banks and cooperative banks are concerned the interest to credit is comparatively lesser and there is a guarantee for the pledged, goods.