Question

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

Answer 1

The formal sector loans can be made beneficial to poor farmers and workers in following ways: 

• The process of providing loans should be made easier and accessible to them. 
• Large number of banks and cooperatives should be opened in the rural areas. 
• Banks and cooperatives should expand their facility of providing loans so as to decrease dependence on informal sector.
•  Special focus should be paid on poor and small farmers along with small scale industries. 
• Loan processing should be simple, faster and timely.