[[1]] is the major source of cheap credit in rural areas.

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Detailed Solution

Loans From Cooperatives is the major source of cheap credit in rural areas.
Cooperative societies are constituted of members from the villages or the nearby villages. It consists of 15-20 members. They meet and have to save an amount as per their requirement for a year. Then they can take loans from the banks. Loans to the members of the cooperative societies are provided for the purchase of agricultural implements, cultivation and agricultural trade, fishing, construction of houses, and other expenses. After a year or two of regular savings, they take loans in the name of the group to make necessary changes in society. They plan occasional meetings and also work on social issues such as creating more employment, dowry, child marriage, etc.

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