Question

Rama is a farmer. She needs loan for agriculture work. Which of the following sources of loan will be beneficial for Rama? Choose the most appropriate option:
I. Bank
II. Agricultural Trader
III. Self-Help Group
IV. Government

• A. Only I, III and IV are correct.
• B. Only I, II and III are correct.
• C. Only II, III and IV are correct.
• D. Only I, II and IV are correct.

Hint:

In agriculture-related loan questions, prefer institutional sources like banks, SHGs, and government schemes over informal ones like traders.

Answer 1

The Correct Option is A

For agricultural loans, the most reliable and commonly used sources are formal institutions like Bank, Self-Help Groups (SHGs), and the Government through various schemes. These institutions provide regulated credit facilities with structured repayment plans. In contrast, Agricultural Traders are informal sources and may charge high interest, making them less beneficial. Therefore, options I (Bank), III (Self-Help Group), and IV (Government) are beneficial loan sources for Rama.