Why are some banks reluctant to sanction loans to small farmers? (2024)

Q.

How Do Financial Institutions Help Businesses? | City National Bank

InIndia, about 80 per cent of farmers are small farmers, who needcredit for cultivation.

(a)Why might banks be unwilling to lend to small farmers?

(b)What are the other sources from which the small farmers can borrow?

(c)Explain with an example how the terms of credit can be unfavourablefor the small farmer.

(d)Suggest some ways by which small farmers can get cheap credit.

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Why are some banks reluctant to sanction loans to small farmers? (2024)

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