Advertisements
Advertisements
Question
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.
Advertisements
Solution
The terms of credit can be unfavourable for the small farmer if he has a bad crop, and is forced to either surrender his collateral (if he borrowed from a bank) or sell off a part of his land (if he borrowed from the informal sector), in order to repay his loan.
APPEARS IN
RELATED QUESTIONS
"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?
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.
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.
Suggest some ways by which small farmers can get cheap credit.
__________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
In a SHG, most of the decisions regarding savings and loan activities are taken by ______.
How can more employment be created in agriculture sector alone ? Explain any three ways.
