oans from Co-operatives Besides banks, the other major source of cheap credit in rural areas are the co-operative societies (or co-operatives).


Q.:- 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 farmers co-operatives, weavers 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.

Answer:-

Loans from Co-operatives Besides bank, the other major source of cheap credit in rural areas are the co-operative societies (or co-operatives). Members of a co-operatives pool their resources for co-operation in certain areas. There are several types of co-operatives possible such as farmers co-operatives, possible such as farmers co-operative, weavers, 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 depostis from its members. With these deposits as collateral, the co-operatives have obtained a largel loan horn the bank.  These funds are used to provide loans to members. Once these loans are repaid, another to members. Once these loans are repaid, Krishak round of lending can take place.

Krishak Co-operative privide 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.