5 Questions
What are some reasons why small farmers need to borrow money for farming?
Small farmers need to borrow money for farming because modern farming methods require a great deal of capital, and they may not have enough money to cover the costs of seeds, fertilizers, pesticides, water, and farm instrument repairs.
Who do most small farmers borrow money from?
Most small farmers borrow money from large farmers, village moneylenders, or traders who supply various inputs for cultivation.
What is the rate of interest on loans for small farmers?
The rate of interest on loans for small farmers is very high.
Why does Savita need to borrow money?
Savita needs to borrow money because she doesn't have enough cash to cover the working capital required for cultivating wheat on her land.
What are the terms of the loan offered by Tejpal Singh to Savita?
Tejpal Singh offers to lend money to Savita at an interest rate of 24% per annum. In addition, Savita has to promise to work on Tejpal's field as a form laborer during the harvest season at ₹100 per day.
Quiz: Understanding the Financial Challenges Faced by Small Farmers in Modern Agriculture Test your knowledge on the financial struggles faced by small farmers in modern agriculture. Explore topics such as borrowing capital, high interest rates, and the various sources of loans available to farmers. Gain insights into the financial challenges that impact small-scale farming communities.
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