what are the various ways through which farmers can get loan ?write their advantages and disadvantages?
Answers
Answer:
Farmers preferred to take loans from the moneylenders because they get the loan on very simple terms without presenting collateral.
Also, these loans are available to them on flexible repayment condition and rate of interest.
Disadvantages of such loans are though these loans are flexible and Rate of Interest is very high.
Through this many farmers were pushed to a vicious cycle of poverty because they cannot pay the loan.
Second Institution from where the farmer can get loans are banks and cooperative societies. Advantage of such an institution is that they provide money at lower Interest rate.
No exploitation of farmers was done on the part of the repayment process.
Disadvantages are this Institution have set of rules where farmers should be eligible to obtain the loan.
Farmer required Collateral for availing loan from banks.
Explanation:
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Answer: Farmers preferred to take loans from the moneylenders because they get the loan on very simple terms without presenting collateral.
Also, these loans are available to them on flexible repayment condition and rate of interest.
Disadvantages of such loans are though these loans are flexible and Rate of Interest is very high.
Through this many farmers were pushed to a vicious cycle of poverty because they cannot pay the loan.
Second Institution from where the farmer can get loans are banks and cooperative societies. Advantage of such an institution is that they provide money at lower Interest rate.
No exploitation of farmers was done on the part of the repayment process.
Disadvantages are this Institution have set of rules where farmers should be eligible to obtain the loan.
Farmer required Collateral for availing loan from banks.