Explain any two reasons as to why co-operative societies and banks need to lend more.
IT is necessary that banks and cooperatives increase their lending so that, the dependence on informal sources of credit reduces.
- Only the banks and cooperative societies can provide loans at cheap rate which can easily save poor from the catches of the money lenders.
- Mostly, the people in rural areas not so learned and hence, they can be easily cheated by the money lenders. Only banks and cooperative societies can save them.
- Rural Households deserves a special attention. In their welfare depends the welfare of the country.