Question
Read the diagram given below and answer the questions that follow:
Sources of Credit for Rural households in India in 2003
(i)Which are the two major sources of credit for rural households in India?
(ii) Which one of them is the most dominant source of credit for rural households?
(iii) Why is it the most dominant source of credit?
Solution
(i) Moneylenders and cooperative societies.
(ii) Moneylenders.
(iii) It is because, small farmers are poor, semi-literate or illiterate and cannot fulfil the conditions of collaterals.
