(D) The bank saves the farmer from debt-trap.
The bank provides credit at a lower interest rate, helping the farmer repay the high-interest moneylender loan and gradually become debt-free.
Source: Money and Credit, Formal Sector Credit in India
The key concept here is debt-trap — when high interest rates make repayment impossible, trapping the borrower in increasing debt. The bank (formal sector) offers lower interest rates, enabling the farmer to repay and escape this trap. Options A and C are irrelevant; B is the opposite of what happens. Examiners expect you to connect "lower interest rate → repayment possible → no debt-trap."