Credit in Rural India
Question 1: Why do farmers need loans?
Answer:
To buy fertilizers and modern seeds, Long gestation period, To buy inputs, Personal expenses, etc.
Question 2: What is a Kisan credit card?
Answer:
A Kisan credit card is a credit card designed for farmers that provides them with access to credit to finance agricultural activities.
Rural Credit – Meaning, Sources, Types and FAQ
India is an agricultural country. The primary income of most people living in the rural areas of India depends on agriculture. Every year, farmers need a huge amount of money to grow crops in their fields. Therefore, farmers always take loans from moneylenders and financial institutions for their good crops even before the crop season arrives. When he sells his crops, he pays off his debt. To increase crop production, the farmer uses many types of fertilizers and modern seeds, which are very expensive. For this expenditure, he borrows money in various ways.
Credit in Rural India
The government has created various institutions to protect the farmers from this type of loan with high-interest rates. Some of them are as follows –Establishment of Social Banks established in the year 1969 and National Bank for Agriculture and Rural Development (NABARD) established in the year 1982 which proved to be an example for Indian farmers.