Money and Credit

Besides banks, the other major source of cheap credit in rural areas

• money lenders

• relatives

• cooperative societies

• friends

Cooperative societies use _______ as collateral to obtain loan from banks.

• lands

• deposits

• members' accounts

• membership amount

Formal sector loan sources are _______

• Money lenders, friends, relatives

• Land owners, employers

• Banks, Cooperative societies, SHGs

• Reserve Bank of India, The World Bank

The Reserve Bank of India supervises the functioning of _____ sources of loans.

• Formal

• Informal

Compared to the formal lenders, most of the informal lenders charge a much ________ interest on loans.

• higher

• lesser

______ and _______ credit is crucial for the country's development

• Accessible and affordable

• Timely and feasible

• Less and high amount of

• Cheap and affordable

The formal sector still meets only about_______ of the total credit needs of the rural people

• 1/4th

• half

• 3/4th

Bank loans require proper ________ and ________ .

• documents and collateral

• time and interest rate

• lenders and borrowers

A typical SHG has ______ members.

• 15 to 20

• 20 to 25

• 25 to 30

• 30 to 35

Saving per member varies from Rs ____ to Rs _____ or more.

• 25 to 50

• 25 to 100

• 50 to 100

• 75 to 100