Question

What are the problems faced by the small farmers by borrowing money from money leaders and brokers ? Why are banks not providing loansto small farmers?

Answer 1

Problems faced by small farmers

Explanation

• During the times of bad harvest ,draught the moneylenders are the only ones to help.
• The process of getting loans from the banks is very lengthy. Sometimes banks doesn't provide the required amount of loan needed.
• The expenditure for getting loans is so very high. Moreover the banks charges high amount of interests . Apart from that the small farmers cannot provide sufficient security to banks.

Therefore, in this situation the farmers easily fell prey in the hands of the moneylenders.

Answer 2

Explanation:

During the times of bad harvest draught the money lenders are only ones to help. The process of getting loans from the banks does not provide the required amount of loan needed. The expenditure for getting loans is so very high