Suppose this year the rains are poor and the crop yield is only half as much as was originally expected. Some people say that if this happens the farmers should be asked to pay back only half the amount they have taken as loans. However other people say that full amount should be repaid, keeping in view the next year’s crop. In your opinion what should the bank do and why?

I agree with both the opinions. In my opinion, the bank should ask the farmer to pay only half the amount due to the crop failure. Later, the bank can ask to repay the remaining amount according to the situation, and the improvement in the crop yield. As, we are aware of the situation that farmers often face this situation due to the poor rain they can’t pay loans; thus, banks should know how to cope up with such a situation and take decision in favor of the farmers as agriculture forms the major part of our economic development. Failure to fulfill their needs will lead to the major loss in our economic development.