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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.

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Question

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.

Short Answer
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Solution

Self-help groups and banks can provide cheap loans to small farmers. Because the loan obtained from them has a lower interest rate than other sources, and may be readily repaid in three or four years.

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Informal Institutions - Local Money Lenders, Landlords, Self Help Groups, Chit Funds and Private Finance Companies
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Chapter 3: Money and Credit - Exercises [Page 53]

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NCERT Social Science Understanding Economic Development [English] Class 10
Chapter 3 Money and Credit
Exercises | Q 11. (d) | Page 53
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