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The presence of adequate knowledge and awareness is a weapon of power. Knowledge is considered equivalent to power. The article will further discuss the need for information and awareness on “Debt literacy and credit” especially in rural areas of India. The literacy rate in rural areas in India is 68% according to the tally of the “Census of India”. The literacy is fairly more than half but quite less than the rate of literacy in the urban areas. The number as a piece of evidence shows how prone is for the population of rural areas to get scammed or be submerged in financial debts. The literate lots, as well as the illiterate lots, should be educated about the process of debts and credit in the market. They should be provided with indebt information what is the process and how efficiently they should use the debt money or if they are even eligible to intake loans and return it efficiently or timely.

Debt literacy is an informative education provided to calculate the knowledge about “debt literacy” and credit along with self-assessed financial knowledge. The calculation is carried out to measure the knowledge about “debit and credit” which assures that any individual shouldn’t take any wrong financial decisions. They should use their correct amount of knowledge for their own financial advancements and manage their financial resources efficiently for an entire lifespan. When it comes to the idea of providing better knowledge to the rural areas, it becomes important for the authorities to pertain them with accurate information. The members or population of rural villages should be made educated about “intaking of debit and credit”. All the above-mentioned ways that should be done is a very hard job to be carried out. 

A rural environment is very different from an urban environment especially when it comes to the idea of having a bank account and storing one’s assets. The first level can be crossed by providing the knowledge in a rural area of possessing a bank account. The importance of having a bank and how one can secure one’s financial assets for the betterment of their entire life. They should be made aware of the mechanism of different banks and how they provide leisures to their account holders. This knowledge should be provided by the bank authorities or the government authority. The authorities should also make the recipient understand both the demerits and merits of “debt literacy and credit”. There should be a positive collaboration between bank associations and financial literacy. 

The government and the bank authorities should work together in bringing financial innovation to a rural sector or area. The bank should work towards providing more assistance for the rural recipient to secure their assets hassle-free. On the other hand, the government should work more towards the upliftment of the poor sections of society. The government should introduce more programs which becomes very beneficial for the farmers and rural members who are working in any other sectors of the economy. Betterment in education and technology provides more opportunities for income and also opens up both bank as well as educational institutions so that some of chaotic traveling and expenditure can be curtailed.  The rural population should have the idea of the benefits behind “debt literacy”. The first benefit is that it will encourage them to make better decisions in investing, borrowing, or saving money. They can be self-reliant and won’t be prey to unnecessary scams or fishing strategies. The better financial decision will aid for better designing of life in rural areas. Once both the benefits and drawbacks are understood they can see the positive result. 

In order to make the rural population able and efficient to secure their financial decision and money, they have to reach the apt authority for that. No better authority for the rural people than any trusted financial institution or even institution that works under the government and can guide the recipient in a fruitful and enlightening manner. The government should work in conducting programs that focus more on enlightening the rural population about finances and banking. These programs can only work when the institution is able to assist the rural recipient in making practical use of the programs or workshops. 

So, to keep a check about the financial growth of these recipients a review should be conducted by the government or the bank authorities to check what kind of assistance can be provided furthermore and how are the rural recipient uses the knowledge “debt literacy and credit”.

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