21.
Vicky is a small farmer. He wants to take a loan of Rs. 50,000 for purchasing seeds and fertilizers for
growing crops. He can either approach a money lender or a cooperative bank in his village. Which of
these two will you advise him to approach to and why?
Answers
Answer:
I would advise that Vicky approaches a cooperative bank in his villgae. Money lenders generally charge high rates of interest ( 30% to 50% ) that small farmers are unable to pay back and hence they resort to taking another loan to repay the loan that they had taken. As a result, they fall into a cycle of debt. In order to prevent this, Vicky can go to a cooperative bank. Cooperative banks were set up in India in order to help the poor farmers get loans. Cooperative generally charge lower rates of interest ( 1% to 3% ) which is much lower than some nationalized banks. Therefore the loan taken in a cooperative bank would be easier to pay back. Hence, Vicky should take a loan from a cooperative bank.
Answer:
He should go to a cooperative bank because they have rules that may benefit him in future and they have a fixed account of rules for each amount
Explanation:
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