Cooperative pool in ____ from their members.

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Communal pool in deposits from their members.
Cooperatives, unlike banks, do not require the fulfilment of terms of credit as rural people are less aware of the documentation process and hardly possess any collateral. So, cooperatives are formed that enable poor borrowers to get loans without any collateral. The pooled deposits of members are used as collateral to get a loan from a bank which is further divided into small loans for borrowers within the cooperative. There are specific cooperatives in villages like weavers, farmers, etc. The cooperatives generally provide loans for agricultural inputs, credit for marriages and building houses, etc. The lends made by cooperatives need to increase so that people can obtain credit at reasonable interest rates and better focus on setting up small businesses or purchasing advanced equipment for production processes. This can help them earn higher incomes and increase the total productivity of the economy.

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