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Oracle
Banks won't lend because these people are bad risks to begin with. Forget these people the banks won't even lend to govt. Thats why we have all these world bank loans that come with easier terms but stipulate better governance. You notice that word on manifestos sinc the last decade.Its very likely that the moneylenders will fleece farmers by charging interest rates that are higher than the banks.
Then banking will have to become a lot more widespread than it is currently. Its an ongoing project. Zero balance accounts were announced recently with this objective in mind.Money-lending shouldn't exist, especially in a country like India in today's world.
Indira took over the banks in the 70s because they refused to move into smaller towns, not worth their while. Today 70% of the country is rural its very expensive to operate a branch model in villages, how to solve it ? Half the country do not use banks.
Micro-financing was another model that had lots of promise but there was just too much opposition.
Another innovation was using your mobile to transfer money, vodafone started this in kenya, it was called m-pesa back in 2006. Could we do it in India ? No, said the RBI (!)
people get into debt whether we like it or not. I had the same attitude towards those that lost homes in the US too btw.Pretty casual attitude if i must say. Just because the downtrodden are good at surviving doesn't mean that they have to.
So manage your debt.
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