Question

How can the formal sector loans be made beneficial for poor farmers and workers? Suggest any
five measures.
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Answer 1

Provide credit at a reasonable rate of interest to fulfil various needs of the people by providing cheap and affordable credit. This credit can be distributed equally which helps in benefiting the poor. This can help in promoting agricultural activities and small-scale industries.

Answer 2

Answer:

• These institutions are regulated by the Reserve Bank Of. India. ...
• There is no exploitation by the lenders.
• Everyone can take a loan that includes big businessmen as. well as the small cultivators or borrowers.
• The cost of borrowing is usually less.
• Process of providing loans should be made easier