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Why is it necessary for the banks and cooperative societies to increase their lending facilities in rural areas? Explain.



Because it help the poor peasants farmers recover or not to fall in dept trap
they are usually trapped in dept trap which is the main reason for increasing farmer suicides if the banks and co operatives increase the loan facilities with low interest rates they can live their life they will have their own land
mostly rural people is rejected because of not having collateral.
so they approach the money lenders with high interest rate when the interest rate increases they are unable to pay then their collateral or property is owned by the lenders. here an unfair method is being used
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Because the rural areas are undeveloped and for developing the banks and the societies have to cooperate for this.

Even in order to improve economical condition of india by giving cheap loans to the people and they can build their houses and live.

Rural areas will have some growing effects.

By taking loans from the banks they can even start some small jobs.

The cooperative companies will help to spred banks all over thr rural area.

People can even do agriculturing  where the societies will help them.

And in the future rural area can be like cities which will show a vast developement
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