please answer fast the following question and answer should be in points.1why farmers are borrowing from SHGs but they are not spending for productive purposes give reason.2.why farmers fail to pay back loans it is alleged that farmers are deliberately refusing to pay back loans. what could be the reason?

Dear Student
Answer to your first question is given below:
1. Farmers or people in rural areas mostly took borrowings from SHG (Self help group), because of the following reason:
(i) From SHG they get it on lower interest rate or at no interest rate mostly.
(ii) Secondly, they mostly need loans in small amount which is not easy to get from banks.
They are not spending on productive purpose as
(i) They don't have much knowledge about expansion of  business or how to use money to increase their profits.
(ii) Mostly they don't have much money for marriages and funerals, so they took loans, and not able to utilise it for productive purpose.

For next question post in separate thread.

Regards
 

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