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Asked by Vikas Last Modified
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Credit is a essential requirements for rural development. Due to low income in rural areas, they have to need credit for better their life's . Most of the rural depends on agriculture. Agriculture sector is developed by the support of credit. Credit is needed by investment on fertilizer, seed, implements, upgrade the technologies and mechanised farming on agriculture sector. On the other hand credit helps rural poor for religious ceremonies and specific needs. credit helps the farmers in the period of natural calamities. So it play a vital role to rural development
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Credit plays a very important role as banking facilities are rarely available due to which they are dependent on informal institutions like money lenders which charge a very high rate of interest and mostly rural people are caught in the debt trap situation because of very high interest rate charged by informal institutions . If credit is easily available then it will lead to development in agriculture as well as industrial houses will also set up industries in rural areas
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