Question

How can the formal sector loans be made beneficial for poor farmers and workers . 7 Suggest any five measures

Answer 1

Formal sector loans can be made beneficial for poor farmers and workers in the following ways
(a) Create awareness to farmers about formal sector loans.
(b) Process of providing loans should be made easier.
(c) It should be simple, fast and timely.
(d) More number of Nationalized Banks’Cooperative banks should be opened in rural sector.
(e) Banks and cooperatives should increase facility of providing loans so that dependence on informal sources of credit reduces.

Answer 2

In the formal loan providers banks and cooperates are included. 

poor people and farmers seek loans from the informal sectors, which exploit them and charge high interest rate. 

Thus by taking loans form formal institutes the benefits are:

1. The formal sector lend more to poor people and worker.

2.It  provide cheap and affordable credit.

3. It ensure that every one receives loans.

4. It provide guidance and help

5. There are more formal institutes