Agriculture Loan Default
View Complete Answer & Explanation
Question (English)
Agriculture loan default rates in India have been:
- Very low
- Chronically high ✓ Correct
- Moderate
- Non-existent
Explanation:
Correct Answer Explanation
Agriculture loan default rates have been chronically high in India.
Key Points:
- Except commercial banks, other formal institutions failed to develop a culture of deposit mobilisation.
- Issues include lending to worthwhile borrowers and effective loan recovery.
- Farmers' inability to pay back is often due to crop failure and insufficient income.
- The expansion of rural banking has taken a backseat after reforms.
Why Other Options Are Wrong
- A, C, D: The text specifically states default rates have been chronically high.
📚 About this Topic — CH-5: RURAL DEVELOPMENT
This multiple choice question is from CH-5: RURAL DEVELOPMENT, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-5: RURAL DEVELOPMENT to strengthen your preparation.
