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.