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i). Inform credit tries to exploit the poor farmers and workers by charging a very high rate of interest on loans and imposing unreasonable terms of credit.

ii). At present rich households avail the benefits of formal credit and poor have to depend on the informal sources due to some weak point like absence of collateral security etc.

iii). Therefore it should be ensured that formal credit should provide credit at reasonable rates to all and especially poor ones to help them fulfill their needs.

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Q: Why should credits at reasonable rates be available for all?
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