question_answer

Study the diagram given below and answer the questions that follow:

Source of Credit for Rural Households in India in 2003

(a) Which are the two major sources of credit for rural households in India?

(b) Which one of them is the most dominant source of credit for rural households?

(c) Why is it the most dominant source of credit? Give two reasons.

 

Answer:

(a) Moneylenders and cooperative societies.

(b) Moneylenders.

(c) (i) Moneylenders are ready to give a loan without collateral.

(ii) Borrowers can get loans even without repaying their earlier loans.