Why does a farmer require credit Give your observation?
1) With the help of credit they can purchase seeds, pesticides, crops and the agricultural instruments. … 4) Credit makes the farmer independent and comfortable. 5) Credit should be taken from the bank, so it would be beneficial. 6) Bank provides loan at low interest so that farmer can take loan easily.
Why is credit important for farmers?
The basic role of credit in Agriculture is to provide capital to acquire any kind of productive assets, land and/or machinery. Credit provides the means for many farmers to adjust their operations to keep up with the constant changes and, by doing so, to improve their operations.
What are various credit needs of the farmers?
Short term credit: The Indian farmers require credit to meet their short term needs viz., purchasing seeds, fertilizers, paying wages to hired workers etc. for a period of less than 15 months. Such loans are generally repaid after harvest.
What are the requirements of farmers?
Personal requirements for a Farmer
- Good at planning.
- Able to analyse and solve problems.
- Good organisational and supervisory skills.
- Responsible approach and attitude.
- Enjoy working outdoors in all kinds of weather.
- Able to work both in a team and with limited social contact.
Why does a farmer require credit Give your observations Class 12?
Credit helps the farmers to commercialise their farming. In other words, commercial farming requires funds that are provided via credit. As the small and the marginal farmers produce only for their subsistence, they fail to generate sufficient surplus to reinvest on their lands leading to degradation of the land. 2.
Why do farmers need rural credit?
Therefore, rural credit helps farmers with their livelihood until the crops are ready for sale in the market. The credit can help farmers acquire seeds, tools, fertilisers and more, which are essential parts of their trade.
What is credit and why is it important?
Credit is part of your financial power. It helps you to get the things you need now, like a loan for a car or a credit card, based on your promise to pay later. Working to improve your credit helps ensure you’ll qualify for loans when you need them.
What is the role of credit?
Credit allows individuals and organizations to purchase items without having to make an immediate payment in cash. Banks use this system of credit to make loans. … When credit improves, the amount of cash a bank has to hold in reserves decreases, which in turn increases earnings.
What does it mean to provide credit?
Acknowledge an accomplishment, as in They really should give her credit for the work she’s done. [Late 1700s] The phrase is sometimes amplified to give credit where credit is due, meaning the acknowledgment should be to the person who deserves it.
What are the credit needs?
student, a working professional, a parent or a widower, building and maintaining good credit is essential. Major purchases such as a house or a car, and even employment opportunities, can be dependent on a good credit history.
For what purpose Indian farmers require credit?
The Indian farmers require credit to meet their short term needs viz., purchasing seeds, fertilizers, paying wages to hired workers etc. for a period of less than 15 months. Such loans are generally repaid after harvest and are called short term credit.