Question

Rama is a farmer. She needs loan for agriculture work. Which of the following sources of loan will be beneficial for Rama? Choose the most appropriate option:

1. Bank
2. Agricultural Trader
3. Self-Help Group
4. Government

Options

• Only I, III and IV are correct.

• Only I, II and III are correct.

• Only II, III and IV are correct.

• Only I, II and IV are correct.

Answer 1

Only I, III and IV are correct.

Explanation:

• Bank (I): Banks provide agricultural loans at lower interest rates, making them a reliable and secure source of credit.
• Self-Help Group (III): Self-Help Groups (SHGs) offer small loans to farmers at low-interest rates and encourage collective financial support.
• Government (IV): Government schemes provide subsidies and low-interest loans to farmers to support agricultural activities.
• Agricultural Trader (II) is not a beneficial source because traders often charge high interest rates and can exploit farmers by binding them to unfavorable conditions.