Compare the contribution of formal and informal credit between urban poor and rich households. Give any two suggestions to increase the role of formal sector in credit creation.
Sources of agricultural credit can be broadly classified into
institutional and non-institutional sources. Non-Institutional sources include
moneylenders, traders and commission agents, relatives and landlords, but
institutional sources include co-operatives, commercial banks including the SBI
Group, RBI and NABARD.
The short term and medium term loan requirements of Indian are mostly met by moneylenders, co-operative
credit societies and Government. But the long-term loan requirements of the are also met by moneylenders, land development
banks and the Government.
Two suggestions to increase the role of formal sector in credit
creation.
1) Adequate number of branches should be open in rural & backward
areas.
2)The procedure to get the loan is time consuming. It should be reduced
Sources of agricultural credit can be broadly classified into institutional and non-institutional sources. Non-Institutional sources include moneylenders, traders and commission agents, relatives and landlords, but institutional sources include co-operatives, commercial banks including the SBI Group, RBI and NABARD.
The short term and medium term loan requirements of Indian are mostly met by moneylenders, co-operative
credit societies and Government. But the long-term loan requirements of the are also met by moneylenders, land development
banks and the Government.
Two suggestions to increase the role of formal sector in credit
creation.
1) Adequate number of branches should be open in rural & backward
areas.
2)The procedure to get the loan is time consuming. It should be reduced
