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Social Science · 2025 · 4 marks
CBSE 2025 · Region 1 · Set 1 · Q36
Read the given source and answer the questions that follow: Loans From Cooperatives Besides banks, the other major source of cheap credit in rural…
Read the given source and answer the questions that follow : Loans From Cooperatives Besides banks, the other major source of cheap credit in rural areas are the cooperative societies (or cooperatives). Members of a cooperative pool their resources for cooperation in certain areas. There are several types of cooperatives possible such as farmers cooperatives, weavers cooperatives, industrial workers cooperatives, etc. Krishak Cooperative functions in a village not very far away from Sonpur. It has $\displaystyle 2300$ farmers as members. It accepts deposits from its members. With these deposits as collateral, the Cooperative has obtained a large loan from the bank. These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place. Krishak Cooperative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses. ($\displaystyle 36.1$) Cooperative societies come under which source of credit ? ($\displaystyle 36.2$) Mention any two sources of capital of cooperative societies. $\displaystyle \frac{1}{2}+\frac{1}{2}=1$ ($\displaystyle 36.3$) Explain the role of cooperative societies in increasing the income of farmers.
Marking-scheme solution
($\displaystyle 36.1$) Cooperative societies come under which source of credit?
(i) Formal sources of credit
($\displaystyle 36.2$) Mention any two sources of capital of cooperative societies.
(i) Deposits from the members of the cooperative
(ii) With the deposit as collateral the co-opearatives obtain large loans from banks.
(iii) Interest earned on loans given by Cooperatives.
($\displaystyle 36.3$) Explain the role of cooperative societies in increasing the income of farmers.
(i) Co-operative societies provide loans on low interest rates which can be further used for increasing crop production.
(ii) They also give interest on deposits. This promotes small saving habits for the farmers.
(iii) Co-operatives provide loans for variety of expenses such as the purchase of agricultural implements fisheries loans etc. which further leads to increase the income of farmers.
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CBSE Class 10 Social Science past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.