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Micro-credit plays an important role in meeting the credit requirements of the poor. Under micro- credit programmes, farmers get adequate credit at cheaper rates. Micro-credit programme promotes thrift in small proportions by a minium contribution from each member From the pooled money,
credit is given to the needy members which is repayable in small instalments at reasonable interest rates. Micro-credit programme abandons the need of any kind of collateral. It also helps in womenempowerment.
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