Credit Co-operatives
Importance of Credit Co-operatives:
1. Provide timely flow of credit to rural areas.
2. Help balance regional development.
3. Arrest the monopoly of money lenders.
Example:
Grameen Bank in Bangladesh offers loans to the rural areas of Bangladesh. Prof. Yunus the founder of the bank found out once that a lady working for 7 days a week still remained in abject poverty. When he looked into the mater he found out that she had taken a loan at a rate of more than 10% interest a day working out to more than 3000% a year. This is the level of exploitation in the rural areas.
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