Question

What can the government do to ease the loan burden when a farmer's crops fail, if the crop failure is properly documented?

• A. They can reduce interest.
• B. They can ask the farmer to repay later without increasing the interest.
• C. They can ask the farmer not to pay in the worst cases.
• D. Governments cannot provide any relief to the farmers.

Answer 1

Answer: (A), (B), (C)

The correct options are
A They can reduce interest.
B They can ask the farmer to repay later without increasing the interest.
C They can ask the farmer not to pay in the worst cases.

In many cases, after seeing the farmer's condition, and checking the crop failure record, the bank may offer relief. This may include reducing interest, extending the time of repayment or even writing off the loan. It is done to keep the farmer's confidence and save them from self-harm.