Question

In the funding process diagram, what is the role of the local bank after a farmer or SHG needs a loan?

Options

• NABARD directly gives the loan to the farmer.

• The local bank sanctions the loan.

• The farmer applies for a city bank loan.

• NABARD stops the process.

Answer 1

The local bank sanctions the loan.

Explanation:

The process begins with the loan need, and the local bank first sanctions the loan before approaching NABARD for funding support.