Question

How do farmers get caught in a dept trap? 3marker

Answer 1

Hey mate..
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•~• Farmers usually take crop loans at the beginning of the season and repay the loan after harvest.


•~• Sometimes, the failure of the crop makes loan repayment impossible.


•~• So, the farmers have to sell a part of their land to repay the loan. Credit in such a condition pushes the borrowers into a situation from which recovery is painful and they get into the debt trap.


•~• Farmers take loans to buy seeds and agricultural equipment but at the time of crop failure there is nothing to sell and they are unable to repay the loan to repay previous loan they took loan again and get trapped into debt trap.

Thanks..

Answer 2

Heya Mate.....

Here is your answer.....

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==> Farmers usually take crop loans at the beginning of the season and repay the loan after harvest.

==> Sometimes, the failure of the crop makes loan repayment impossible.

==> So, the farmers have to sell a part of their land to repay the loan. Credit in such a condition pushes the borrowers into a situation from which recovery is painful and they get into the debt trap.

Thanks.....

I hope it helps.....

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