Mohan, a small farmer hailing from Andhra Pradesh chooses to approach a money lender even though he knows the burden of a debt trap. Why would Mohan do that?

Banks are reluctant to lend money to small farmers.

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Mohan is least bothered about his future.

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Mohan is not a part of a Self-help Group.

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Mohan has an urgent expenditure.

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Solution

The correct options are
A Banks are reluctant to lend money to small farmers.
C Mohan is not a part of a Self-help Group.
D Mohan has an urgent expenditure.
Small farmers are often faced with urgent money requirements because they depend on traditional forms of irrigation. They plough and sow depending on rain patterns. Banks are generally reluctant to lend small farmers. Even if the banks lend, the process consumes a lot of time. Being in an SHG could have helped Mohan secure a low interest loan.

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