Answer:
(i) Besides banks, the other major source of cheap credit in rural areas are the cooperatives. (ii) Members of a cooperative, pool their resources for cooperation in certain areas. (iii) Cooperatives form members, who accept deposits from its members. With these deposits as collateral, the cooperative obtains a large loan from the bank. These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place.
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