Quiz on Challenges faced on lending and financing

What is a common reason why many farmers do not apply for bank loans?

• Too much money is given

• Lack of awareness

• Free tools are not given

• Weather is always good

Why do farmers sometimes end up paying more when borrowing from private lenders?

• No documents needed

• High interest rates

• Gifts are offered

• Loans are bigger

What protects a farmer from losses due to natural disasters?

• Weather app

• Crop insurance

• Bank manager

• Fertilizer company

What happens if a farmer has no credit history?

• Gets a big loan

• Gets extra subsidy

• Faces difficulty getting a loan

• Loan is cancelled

When loans are delayed, what is most affected?

• Harvest

• Sowing time

• Market rate

• Weather report

Who takes a share of farmer's income during selling of crops?

• Weather officer

• Government staff

• Middleman

• Shopkeeper

Why do banks hesitate to give loans to farmers with no past borrowing record?

• They are too rich

• They don’t need loans

• They lack credit history

• They use mobile phones

What happens if farmers don’t understand loan terms?

• They repay faster

• They grow more crops

• They may misuse the loan

• They buy tractors

What is a negative effect of middlemen in agriculture?

• Help farmers earn more

• Improve transportation

• Take a big cut from farmer’s profit

• Provide free seeds

Why is timely loan disbursement important for farmers?

• To buy expensive machines

• To show off to others

• To do farming at the right time

• To avoid paying tax