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प्रश्न
In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.
Explain with an example of how the terms of credit can be unfavourable for the small farmer.
उत्तर
The terms of credit can be unfavourable for the small farmer if he has a bad crop, and is forced to either surrender his collateral (if he borrowed from a bank) or sell off a part of his land (if he borrowed from the informal sector), in order to repay his loan.
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संबंधित प्रश्न
Why is the supervision of the functioning of formal sources of loans necessary?
How can the formal sector loans be made beneficial for poor farmers and workers? Suggest any five measures.
What is the basic idea behind the SHGs for the poor? Explain in your own words.
Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.
In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.
Why might banks be unwilling to lend to small farmers?
In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.
What are the other sources from which the small farmers can borrow?
Formal Sources of Credit Does Not Include
In a SHG, most of the decisions regarding savings and loan activities are taken by ______.
Why do banks or lenders demand collateral against loans?
Answer the following question.
Explain the importance of 'collateral'.
