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.
