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प्रश्न
Why is it necessary for the banks and cooperative societies to increase their lending facilities in rural areas? Explain.
उत्तर
It is found that due to factors such as inadequate banking system, cumbersome paperwork, lack of credit worthiness and lack of awareness, a large number of rural households still depend on the informal sources of credit such as money lenders and land lords.
However, credit from informal sources can sometimes have serious repercussions such as exorbitant rate of interest and high mortgage obligations. In such a scenario, it is important to expand the formal sources of credit such as banks in rural areas so that credit can be provided for various development activities at reasonable rates without any undue exploitation.
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संबंधित प्रश्न
Which one of the following is a formal source of credit?
How do banks mediate between those who have surplus money and those who need money?
Why do we need to expand formal sources of credit in India?
Majority of the credit needs of the _________ households are met from informal sources.
__________costs of borrowing increase the debt-burden.
How can the problem of unemployment be eradicated in India? Explain any three ways.
“Credit can play a positive role.” Justify the statement with arguments.
Answer the following question.
Describe the importance of formal sources of credit in economic development.
Explain the importance of formal sector loans in India.
Explain any three reasons for the banks and cooperative societies to increase their lending facilities in rural areas.
