CBSE 2024 · Region 5 · 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 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. ($\displaystyle 36.1$) How do 'Krishak Cooperatives' secure funds for providing loans to their members ? ($\displaystyle 36.2$) What are the different types of loans that 'Krishak Cooperatives' offer to their members ? ($\displaystyle 36.3$) Why are such cooperatives desirable in the rural areas ?