Besides banks, the other major source of cheap credit in rural areas is ____.

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Besides banks, the other major source of cheap credit in rural areas is cooperatives.
Cooperatives are associations of individuals of moderate means who pool together their resources and lend out loans to their members with proper written procedures. They belong to the formal sources of credit in India. One of its advantages is that any number of people can form a cooperative in India, from just ten members to 500 members or more. It also eliminates the need for other workers, as the members do all work in a cooperative. The government also provides support by giving loans to recognised cooperatives at lower interest rates and subsidies. Since all members are stakeholders in a cooperative, the economic power is not concentrated on a single person alone.

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