Monday, November 30, 2009

Rural India Yet To Get Access to Formal Sources of Credit

India has been shining bright on the world map however, the conditions in the rural areas of the country can still only be described as abysmal. While people in the urban areas enjoy world class facilities, almost 73% of rural India is yet to get access to formal avenues of financial credit. As a result of this, even today many in the rural parts of the country still fall prey to the archaic money lending system where the interest rates are extremely unreasonable.

Banks continue to play an increasingly vital role in paving India’s path to becoming an Asian superpower. However, there needs to be presence of these formal sources of credit in the rural parts of the country so that the poor are able to free themselves from the vicious circle of interest and repayment of the principal.

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