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How are the cooperative functioning in …

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How are the cooperative functioning in rural areas to solve the problem of credit

    • Posted by Ruchi Taneja 5 years, 10 months ago

    CBSE > Class 10 > Social Science
    • 1 answers

    Yogita Ingle 5 years, 10 months ago

    • Besides banks, the other major source of cheap credit in rural areas are the cooperatives.
    • Members of a cooperative, pool their resources for cooperation in certain areas.
    • 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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