Counterview on the given points

Dear Student,
Such questions are made for enhancing the self-creative skills and should be tried
answering on your own. However, here are a few points that will help you in framing
your answer: 
Advantages of Farm Waivers:
  • It incentivizes farmers to borrow money from formal channels of lending instead of looking to lend money from money lenders. In absence of loan waivers, farmers who are unable to repay loans become ineligible for receiving additional borrowing. In such a situation, they cannot change their fortunes. In the absence of help from formal credit channels, they are forced to look for help from money lenders. 
  • It provides immediate relief to farmers who are suffering from indebtedness. It gives them a chance to change their fortunes.
  • Loan waivers allow banks to renew their loans and extend fresh credit.


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