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.
