Significant Features of Rural Credit Markets
What makes rural credit markets in developing countries different from other credit markets? The three principal features distinguished here-collateral
security, underdevelopment in complementary institutions, and covariant
risks-characterize all credit markets to some extent. The distinction is in degree rather than in kind; these problems are felt much more acutely in rural
credit markets, and in developing countries, than in other contexts in which
credit markets operate. That is why those governments have regarded policy
initiatives in this area as important