Credit or loans to cope with drought conditions
In this study, households took credit or loans to cope with drought. A third of households studied reported that easy repayment procedures and instant coverage of risk were the major reasons for taking credit and loans. Official sources (banks, cooperatives, and self-help groups) accounted for a little over half of the loans in the study region. In other areas, loans were not functioning due to a lack of detailed activity plan and no revolving fund. Communities approach banks and private money lenders for availing the loan facilities.