how can the formal sector leave be made beneficial for poor farmers and worker . suggest any five measure
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Formal sector credit includes loans from banks and cooperatives which are hence regulated by RBI.
This sector lending is very beneficial for poor section of society, women and workers.
It is because of several reasons like the rate of interest is very low compared to informal sector.
Informal sector tries to exploit and cheat the poor people by charging high rate of interest and unreasonable terms of credit.
But on the other hand, banks encourage the poor people to come together as Self Help Groups SHGs to inculcate into them the habit of savings and get easy loans from the banks.
Hope it helps...
This sector lending is very beneficial for poor section of society, women and workers.
It is because of several reasons like the rate of interest is very low compared to informal sector.
Informal sector tries to exploit and cheat the poor people by charging high rate of interest and unreasonable terms of credit.
But on the other hand, banks encourage the poor people to come together as Self Help Groups SHGs to inculcate into them the habit of savings and get easy loans from the banks.
Hope it helps...
Answered by
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I think its formal loans and not leave. Formal sector loan can be made beneficial for poor farmers and workers in the following ways:
1.As formal sector provides loans with low interest rate as compared to informal which will help poor farmers and workers to repay their loans easily without going into debt trap.
2.Loans from formal sector can help poor farmers and workers take m
oney for various purposes like farmers can buy fertilisers, pesticides for their crops by these loans and improve their production.
3.Poor people can be saved from exploitation done by merchants.
4.Can help in increase of their livelihood.
5.It provides guidance and help to them.
Hope the answer was useful!!
1.As formal sector provides loans with low interest rate as compared to informal which will help poor farmers and workers to repay their loans easily without going into debt trap.
2.Loans from formal sector can help poor farmers and workers take m
oney for various purposes like farmers can buy fertilisers, pesticides for their crops by these loans and improve their production.
3.Poor people can be saved from exploitation done by merchants.
4.Can help in increase of their livelihood.
5.It provides guidance and help to them.
Hope the answer was useful!!
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