Question : Statement 1: Institutional sources of credit provide farmers with timely access to credit facilities.
Statement 2: Institutional sources of credit have simplified loan application procedures.
Option 1: Both statement 1 and statement 2 are true.
Option 2: Both statement 1 and statement 2 are false.
Option 3: Statement 1 is true, but statement 2 is false.
Option 4: Statement 1 is false, but statement 2 is true.
Correct Answer: Both statement 1 and statement 2 are true.
Solution : The correct answer is (a) Both statement 1 and statement 2 are true.
Statement 1 is true because institutions such as banks, cooperatives, and government programs are designed to offer financial support to farmers when they need it. These institutions have established systems and processes to ensure timely disbursal of credit to eligible farmers.
Statement 2 is also true. Institutions recognize the importance of easy and accessible credit for farmers and have taken measures to simplify loan application procedures. They often provide guidance and support to farmers in completing the necessary documentation and streamline the application process to facilitate faster approval and disbursement of loans.
Therefore, both statements are true, and statement 2 supports statement 1.
Question : Statement 1: Institutional sources of credit provide farmers with flexible repayment options.
Statement 2: Institutional sources of credit offer longer loan tenure compared to informal sources.
Question : Statement 1: Institutional sources of credit offer flexible repayment schedules to accommodate farmers' cash flows.
Statement 2: Institutional sources of credit require farmers to provide collateral for loan approval.
Question : Statement 1: Institutional sources of credit offer lower interest rates compared to informal sources.
Statement 2: Institutional sources of credit provide farmers with financial counseling and guidance.
Question : Statement 1: Institutional sources of credit include banks, cooperatives, and government programs.
Statement 2: These institutions provide credit to farmers at high-interest rates.
Question : Statement 1: Institutional sources of credit provide loans at lower interest rates compared to informal sources.
Statement 2: They have access to funds from government schemes and financial institutions.
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