Which of the following statements is true?

Statement 1- Non-institutional sources of rural credit consists of a set of multiagency institutions.

Statement 2- Institutional source of rural credit includes money lenders, commission agents etc.

Neither statement 1 nor statement 2 is true

The sources of rural credit can be classified into 2 heads:

• Institutional - These sources of rural credit consists of a set of multiagency institutions like Cooperative credit societies, Land development banks, Regional rural banks, Commercial bank credit, Self help groups.
• Non-institutional -These sources include Money lenders, Traders and Commission agents, Landlords and Relatives etc.