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Bank loans to farmers come under which category of formal lending?
AIndustrial loans
BPersonal loans
CAgricultural / priority-sector loans
DForeign loans
Answer & Solution
Correct answer: C. Agricultural / priority-sector loans
1. Loans to farmers fall under priority-sector lending in India.
2. Commercial banks must lend a fixed share of their portfolio to priority sectors.
3. This includes agriculture, small industry and weaker sections.
_Source: NCERT Class 10 Understanding Economic Development, Ch 3 "Money and Credit"_
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