who provides capital to small farmers at high rate of interest
Answers
Answered by
47
Medium and big farmers retain a part of their agriculture product and sell the surplus in the market.
They put this money into their bank account which is received from selling the surplus.
Out of their saved money kept in Banks, they provide loans to poor and small farmers at a very high interest like 24 % for 4 months keeping their land mortgage.
Medium and big farmers use their savings to arrange the working capital for farming in the next agricultural season.
Big farmers in addition to providing loans, use this money to buy machinery, cattle or set up shops.
Small and poor farmers also borrow money from village money lenders.
They put this money into their bank account which is received from selling the surplus.
Out of their saved money kept in Banks, they provide loans to poor and small farmers at a very high interest like 24 % for 4 months keeping their land mortgage.
Medium and big farmers use their savings to arrange the working capital for farming in the next agricultural season.
Big farmers in addition to providing loans, use this money to buy machinery, cattle or set up shops.
Small and poor farmers also borrow money from village money lenders.
Answered by
83
Yo mate !!
Money lenders and middle (brokers ) give capital to small farmers at high rate of interest .
Good day !
Money lenders and middle (brokers ) give capital to small farmers at high rate of interest .
Good day !
Similar questions