How can formal sector loans be made beneficial for poor farmers and workers?
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This is very useful for farmers nd traders because banks and other financial societies take less intrest compare than informal sources and they do not tracking of debttrap
Aman1215:
nice job
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1. Their is a need to increase the lending activities of the formal sector in rural areas, to reduce the dependence on the informal sector of credits.
2. Informal sources like Moneylender, charges a high interest rate whereas bank charges less interest rate on loans taken, so it increase the income of borrowers.
3. Their is also a necessary need to distribute the loans from formal sector equally to the poor people.
4. Their is a need to set up banks to several places in rural areas, so that poor farmers can borrow at cheap rate.
5. Their is a need that large share of these loans also given to poor farmers and workers to set up their own business and small scale industries.
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