Formal sector loans can be made beneficial for poor farmers and workers in the following ways:
(i) Create awareness to farmers about formal sector loans.
(ii) Process of providing loans should be made easier.
(iii) It should be simple, fast and timely.
(iv) More number of Nationalized Banks/Cooperative banks should be opened in rural sector.
(v) Banks and cooperatives should increase facility of providing loans so that dependence on informal sources of credit reduces.
(vi) The benefits of loans should be extended to poor farmers and small scale industries.
(vii) While formal sector loans need to expand, it is also necessary that everyone receives these loans.
