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Why do you think the middle farmers take loans from the large farmers instead of the banks?
Answer: To take care of their basic needs, small farmers and landless labourers usually have to borrow money from big money lenders in the village. The loans are given at a high interest rate. The farmers, thus, have to keep borrowing money in order to repay their loans.
What is meant by loan waiver?
From Wikipedia, the free encyclopedia. A loan waiver is the waiving of the real or potential liability of the person or party who has taken out a loan through the voluntary action of the person or party who has made the loan.
Under which circumstances poor farmers find themselves unable to pay back the loan What happens after that?
Soon the loan becomes so large that no matter what they earn, they are unable to repay. This is when we can say they are caught in debt. Whenever this situation occurs, farmers become helpless. Their helplessness to repay the loan sometimes compel them to commit suicide.
What problems are faced by small and marginal farmers and agricultural Labourers in obtaining loans and capital?
1. The large landlords provide loans to the small and marginal farmers on high-interest rates. 2. Sometimes, the rich landlords obtain the property of the small and marginal farmers when they failed to repay the loan.
What are the problems faced by farmers in India?
The problems faced by Indian farmers go unnoticed in the entire process of extracting food and harvesting crops. The main problems facing Indian agriculture are; Uncertainty in the water supply Lack of access to formal credit and also insurance
What are the problems of agricultural credit in India?
Problems of Agricultural Credit in India with Suggested Remedies! An average Indian farmer, who has to work on an uneconomic holding’, using traditional methods of cultivation and being exposed to the risks of a poor agricultural season is almost always in debt. He is a perennial debtor.
What are the problems faced by farmers during the lockdown?
Problems faced by farmers during the lockdown. The major problem faced by the agriculture sector in the lockdown is the fleeing of farmers to their homes due to the fear of the pandemic. Lockdown extension is a burden to the agriculture sector. Even with the bumper harvest, farmers facing problems due to various restrictions.
Who is responsible for extending Agricultural Finance in India?
Up to 1982 it was responsible for extending agricultural finance under guidance of the Reserve Bank of India. It may also be noted that the short- and medium-term credit requirements of the farmers is met by indigenous bankers or village moneylenders, co-operative credit societies and commercial banks.