Discuss in brief the role of credit in rural development in the contex

Question

Discuss in brief the role of credit in rural development in the context of organized banking and rural credit.

21 Jan 2022

Answer :

Word Count : 321

The importance of credit in rural development are as follows :
(i) Credit for production : In this, all type of credits are included which are used for various farm activities such as credit for seeds, fertilizers, irrigation and fodder. The farmers have credit to borrow to pay the rent on land, wages of the labourers, government tax etc.
All these activities are related to production, Therefore, the credit received to meet their needs is called productive credit,
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