Gopal is supervising the work of one farm labourer. Gopal has seven acres of land. He is one of the few persons in Sonpur to receive a bank loan for cultivation. The interest rate on the loan is 8.5 percent per annum and can be repaid anytime in the next three years. Gopal plans to repay the loan after harvest by selling a part of the crop. He then intends to store the rest of the potatoes in cold storage and apply for a fresh loan from the bank against the cold storage receipt. The bank offers this facility to farmers who have taken crop loans from them. What kind of facility is provided by a bank to Gopal?
a) Cultivation Arrangements
b) CreditArrangements
c) Collateral Arrangements
d) Cold StorageArrangements
Answers
Answered by
1
Answer:c) Collateral Arrangement.
Similar questions