by aditya abhishek
To support growth in the rural areas, financial assistance plays a major role. It helps ideas to convert into goal oriented actions & help rural areas to develop.
It refers to the financial support such as loan provided to farmers, small-scale industries, and other individuals who reside in rural areas.
Rural people often lack access to financial resources due to various reasons, such as the lack of formal financial institutions, low levels of literacy, & poverty.
It plays a significant role in the economic & social development of rural areas. It is essential to promote financial inclusion and empower rural communities by providing them capital.
Farmers use to finance agricultural activities, such as the purchase of seeds, fertilizers, & farm machinery as well as for non-agricultural purposes, such as financing rural start-ups.
Rural credit can be classified into Short term credit for purchase of seeds, fertilizers, and farm machinery & Long term credit for purchase of land.
Formal credit is provided by formal financial institutions such as banks, cooperatives, & government agencies but informal credit is provided by local moneylenders.
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