CUET Preparation Today
Why is it important for banks and cooperatives to increase their lending particularly in rural areas? |
Give boost to the banking sector Banking reach can be expanded Banks can earn higher level of profits Dependence on informal sources reduces |
Dependence on informal sources reduces |
Most loans from informal lenders carry a very high interest rate and do little to increase the income of the borrowers. Thus, it is necessary that banks and cooperatives increase their lending particularly in the rural areas, so that the dependence on informal sources of credit reduces. |
