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प्रश्न
In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.
Why might banks be unwilling to lend to small farmers?
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उत्तर
Banks are hesitant to give loans to small farmers because they lack collateral, and some are unable to repay the loan on time. Apart from that, some farmers are already in debt, so banks are hesitant to loan them more money.
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संबंधित प्रश्न
"Deposits with the banks are beneficial to the depositors as well as to the nation." Explain the statement
How can the formal sector loans be made beneficial for poor farmers and workers? Suggest any five measures.
What are the reasons why the banks might not be willing to lend to certain borrowers?
Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.
In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.
Why might banks be unwilling to lend to small farmers?
In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.
What are the other sources from which the small farmers can borrow?
In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.
Explain with an example of how the terms of credit can be unfavourable for the small farmer.
______ is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.
Formal sources of credit does not include ______.
Answer the following question.
Explain the importance of 'collateral'.
