Sectors of Credit

Collateral is an asset that the borrower owns such as land, building, etc., and uses this as a guarantee to a lender until the loan is repaid.

It is necessary that banks and cooperatives increase their lending, particularly in _____ (urban/rural) areas so that the dependence on informal sources of credit reduces.

Andhra Pradesh accounts for the maximum percentage of Self-Help Groups in bank credit.

_____ ($85/95$)percentage of poor people living in the urban areas taking loans from the informal sector.

A _____ (Debt Trap/Money Trap)is a situation in which a borrower is unable to pay back the loan.

_____ ($30/40$)percentage of rural households in India is dependent upon moneylenders for credit in the year $2003$.

Name the institution responsible to collect data on formal sector credit. 

Cheap and affordable credit is crucial for the country’s development.

The idea of a Self-Help Group was to educate rural _____ (women/men).

_____ (Self-Help Groups/Cooperative Society)are informal associations of people who come together to find ways to improve their living standards in the society.

In India, there is no organisation that supervises the credit activities of lenders in the formal sector.

_____(Collateral/Share) is an asset that the borrower owns and uses it as a guarantee to a lender until the loan is repaid.