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Conclusion:
- In this chapter, we first looked at the barter system and modern money as a medium of exchange . Then we looked at different forms of modern money and how they are linked with the banking system.
- We read about loan activities of banks and how they earn profit. Basically, how the whole banking system works.
- We also saw different credit situations (positive and negative). How credit, if used carefully can be helpful in increasing the income of the borrower but can also push the borrower into a debt trap .
- Then we studied the terms of credit and what collateral is.
- After that we looked at different sources of credit in India (formal and informal) and compared them with each other.
- At last we looked at how in rural villages people especially women are forming self-help groups and dealing with the problem of lack of collateral themselves.
- Then we saw the example of the Grameen bank of Bangladesh which become one of the success stories in reaching the poor to meet their credit needs at reasonable rates.
