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, established sources such as Banks, Self-Help Groups (SHGs), and Government schemes are preferred. These offer structured credit and repayment terms. Agricultural Traders, being informal, often impose higher interest rates, making them less advantageous. Consequently, options I (Bank), III (Self-Help Group), and IV (Government) represent favorable loan sources for Rama.