Question

Why banks are so strict to give loans to the small farmers. Do not spam otherwise reported.​

Answer 1

Answer:

(a) Small farmers have no collateral against loans. Collateral is an asset that the borrower owns and uses this as a guarantee to a lender until the loan is repaid. That is why banks have no interest to lend to small farmers

Answer 2

Explanation:

(a) Small farmers have no collateral against loans. Collateral is an asset that the borrower owns and uses this as a guarantee to a lender until the loan is repaid. That is why banks have no interest to lend to small farmers. ... In this situation credit pushes the farmers into debt trap.