How can the formal sector loans be made beneficial for poor farmers and workers? Suggest any five measures.

 

Answer:

Points to Remember:

Formal sector loans can be made beneficial for poor farmers and workers in the following ways:

  • By creating awareness
  • Simple and fast process
  • Increase the number of formal sector banks
  • More or special facilities
  • Benefits should be extended to poor farmers and small-scale industries .

Answer to be written:

Formal sector loans can be made beneficial for poor farmers and workers in the following ways:

  • There should be an increase in the awareness among the farmers about the formal sector loans and their benefits.
  • The process of loans or credit for farmers should be fast, easy and simple as they may not be able to perform or feel comfortable with complex processes.
  • The number of commercial banks in rural areas should be increased to decrease the dependency on the informal sector.
  • There should be special facilities and focus on farmers to make them comfortable with formal sector loans.
  • The benefits of loans should be extended to poor farmers and small-scale industries.
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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.