Question 3 - Past Year Questions - 5 Marks - Chapter 3 Class 10 Economics - Money and Credit - Economics

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

Answer:

Points to Remember:

Formal sector loans can be made beneficial for poor farmers and workers in the following ways:

• By creating awareness
• Simple and fast process
• Increase the number of formal sector banks
• More or special facilities
• Benefits should be extended to poor farmers and small-scale industries .

Answer to be written:

Formal sector loans can be made beneficial for poor farmers and workers in the following ways:

• There should be an increase in the awareness among the farmers about the formal sector loans and their benefits.
• The process of loans or credit for farmers should be fast, easy and simple as they may not be able to perform or feel comfortable with complex processes.
• The number of commercial banks in rural areas should be increased to decrease the dependency on the informal sector.
• There should be special facilities and focus on farmers to make them comfortable with formal sector loans.
• The benefits of loans should be extended to poor farmers and small-scale industries.