Question

Explained reasons why farmers find it difficult to get loan from banks?

Answer 1

Answer:

absence of adequate instruments to manage risks. low levels of demand due to fragmentation and incipient development of value chains. lack of expertise of financial institutions in managing agricultural loan portfolios.

Explanation:

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Answer 2

Farmers find it difficult to loan from banks because the process of getting loans is quite complicated.

Explanation:

• Farmers are the group of people that require finance on a regular basis. However, their needs of finances are not properly met because the farmers are unable to procure loans.
• This is mainly because the process of getting loans in India is very complex.
• In addition, the small farmers are uneducated due to which they do not have proper documents or financial records.
• Farmers generally prefer borrowing from other sources as the informal sources of credit do not require much complication and delay.