How can formal sector loans be made beneficial for poor farmers and workers?

cbse
economics
money-and-credit
cbse-class-10
cbse-class-10-social

#1

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

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

  • It is required to create awareness among farmers about formal sector loans.
  • Process of providing loans should be made easier.
  • It should be simple, fast and timely.
  • More number of Nationalised banks/comparative bank is should be agreed in rural sector.
  • Banks and cooperatives should increase facility of providing loans so that dependence on informal sources of credit reduces.
  • The benefits of loans should be extended to poor farmer and small scale Industries.
  • While formal sector loans need to expand, it is also necessary that everyone receives these loans.