10th Class Social Science Money and Credit

  • question_answer 1)
    Why do we need to expand formal sources of credit in India?  

    Answer:

    The formal sector still meets only about half of the total credit needs of the rural people. The remaining credit needs are met from informal sources. Most loans from informal lenders carry a very high interest. The formal sources of credit for lending need to expand their operations particularly in rural areas, so that the dependence, on informal sources of credit reduces.  


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