Underline the various uses of credit in Sonpur in the above passages. Loans from Co-operatives Besides banks, the other major source of cheap credit in rural areas are the co-operative societies (or co-operatives). Members of a co-operative pool their resources for co-operation in certain areas. There are several types of co-operatives possible such as farmer’s co-operatives, weaver’s co-operatives, industrial workers co-operatives, etc. Krishak Co-operative functions in a village not very far away from Sonpur. It has 2300 farmers as members. It accepts deposits from its members. With these deposits as collateral, the Co-operative has obtained 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. Krishak Co-operative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.

Question

Underline the various uses of credit in Sonpur in the above passages. Loans from Co-operatives Besides banks, the other major source of cheap credit in rural areas are the co-operative societies (or co-operatives). Members of a co-operative pool their resources for co-operation in certain areas. There are several types of co-operatives possible such as farmer&#x2019;s co-operatives, weaver&#x2019;s co-operatives, industrial workers co-operatives, etc. Krishak Co-operative functions in a village not very far away from Sonpur. It has 2300 farmers as members. It accepts deposits from its members. With these deposits as collateral, the Co-operative has obtained 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. Krishak Co-operative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.

Philoid · Accepted Answer

Members of cooperative societies contribute their resources in order to cooperate certain areas. Now there may be various kinds of cooperative such as farmer, weaver, industrial workers etc. Krishak Cooperative functions in a village not very far away from Sonpur. It has a total member of around 2300 farmers. And it collects the deposits from its members. With the help of this collected amount as collateral, the cooperatives have received a large loan from the bank. They use this fund to give loans to the needed people. After getting the payment of debt Krishak cooperative give loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of hoses and for a variety of other expenditures. Besides getting loans from the cooperative banks, the other major sources of getting cheaper credit in rural areas are the cooperative societies only.