ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Short term credit: The Indian farmers require credit to meet their short term needs viz., purchasing seeds, fertilizers, paying wages to hired workers etc. for a period of less than 15 months. Such loans are generally repaid after harvest.

Detailed explanation-2: -Rural credit refers to any kind of loan or financial assistance that is taken by the people residing in the rural areas for the purpose of agriculture or setting up small businesses.

Detailed explanation-3: -Regional Rural Banks-Government initiated regional rural bank was set up to examine the specific needs of landless workers, small and marginal farmers, rural poor and artesian. The Government-The Government provides short and long term goals to farmers if there is an emergency like famine and flood.

Detailed explanation-4: -The various sources of rural credit are rural banks, co-operative societies, land development banks, commercial banks, and loans provided by the government. All these rural credit mediums allow farmers to take different credit services, facilities, and loans to meet their production requirements.