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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