Suppose this year the rains are poor and the crop yield is only half a

1.	Suppose this year the rains are poor and the crop yield is only half as much as was originally expected. Some people say that if this happens the farmers should be asked to pay back only half the amount they have taken as loans. However, other people say that full amount should be repaid, keeping in view the next year’s crop. In your opinion, what should the bank do and why?
Answer» 1. Whatever the situation, normally banks ask for full payment of loan. 2. When there is a crop failure or less yield, farmers are unable to repay their loans. 3. In such situation banks have to reschedule the repayment procedure and has to provide crop loans to the farmers for the next season. 4. Government shall support the farmers by waiving interest component and directing the banks to provided necessary loans for next crop.

Suppose this year the rains are poor and the crop yield is only half as much as was originally expected. Some people say that if this happens the farmers should be asked to pay back only half the amount they have taken as loans. However, other people say that full amount should be repaid, keeping in view the next year’s crop. In your opinion, what should the bank do and why?

Answer»

1. Whatever the situation, normally banks ask for full payment of loan.

2. When there is a crop failure or less yield, farmers are unable to repay their loans.

3. In such situation banks have to reschedule the repayment procedure and has to provide crop loans to the farmers for the next season.

4. Government shall support the farmers by waiving interest component and directing the banks to provided necessary loans for next crop.