Prove with an argument that there is a great need to expand formal sources of credit in rural India.

There is a great need to expand formal sources of credit in rural India because there is no organization which supervises the credit activities of lenders in the informal sector. They lend at whatever interest rate they want and use unfair means of getting their money back.

NOTE – Formal sources of credit include banks and cooperatives

Informal sources of credit include moneylenders, traders, employers, relatives, friends etc.