Rural credit is the credit which is given to the farmers for agriculture and other purposes relating to agriculture and rural purposes. There are many difficulties in regarding with the rural credit expansion in Pakistan.
There is no flow of the credit to the small farmers. Big land lord and political strong land lards get loan for themselves and needy and poor farmers do not get any type of credit to meet their seasonal expenses.
Too much documents are required for attuning credit and small farmers of the village are uneducated, therefore, they do not apply for credit.If some farmers succeed in completing all documents and their loans have been approved but their is always delay in disbursement of loan.
Rate of interest is very high in rural credit; small farmers can not afford this rate of interest offered by the financial institutions.In Pakistan, many loans to big landlords have been written off because of their political pressure and there is always delay in returning of loans which is serious problem of rural credit.
Reaching the small farmers is very expensive for an individual institution because they are far from urban areas and they have no branches of financial institutions in the rural areas.
Most of the farmers of our country are uneducated and they do not know the importance of credit and they do not take interest in credit.
There is no flow of the credit to the small farmers. Big land lord and political strong land lards get loan for themselves and needy and poor farmers do not get any type of credit to meet their seasonal expenses.
Too much documents are required for attuning credit and small farmers of the village are uneducated, therefore, they do not apply for credit.If some farmers succeed in completing all documents and their loans have been approved but their is always delay in disbursement of loan.
Rate of interest is very high in rural credit; small farmers can not afford this rate of interest offered by the financial institutions.In Pakistan, many loans to big landlords have been written off because of their political pressure and there is always delay in returning of loans which is serious problem of rural credit.
Reaching the small farmers is very expensive for an individual institution because they are far from urban areas and they have no branches of financial institutions in the rural areas.
Most of the farmers of our country are uneducated and they do not know the importance of credit and they do not take interest in credit.
