The small farmers can get cheap credit from different sources like – Banks, Agricultural Cooperatives, and SHGs. For more answers visit to website: https://www.tiwariacademy.com/ncert-solutions/class-10/social-science/
The small farmers can get cheap credit from different sources like – Banks, Agricultural Cooperatives, and SHGs.
The terms of credit can be unfavourable for the small farmer which can be explained by the following – a small farmer borrows from a local moneylender at a high rate of interest of 10 percent to grow rice. But the crop is hit by drought and it fails. As a result, farmer has to sell a part of the lanRead more
The terms of credit can be unfavourable for the small farmer which can be explained by the following – a small farmer borrows from a local moneylender at a high rate of interest of 10 percent to grow rice. But the crop is hit by drought and it fails. As a result, farmer has to sell a part of the land to repay the loan. He is caught in a debt trap.
Apart from bank, the small farmers can borrow from local money lenders, agricultural traders, big landlords, cooperatives and SHGs etc. Borrowing from middlemen and moneylenders is not always favourable and they end up in a debt trap. For more answers visit to website: https://www.tiwariacademy.com/Read more
Apart from bank, the small farmers can borrow from local money lenders, agricultural traders, big landlords, cooperatives and SHGs etc. Borrowing from middlemen and moneylenders is not always favourable and they end up in a debt trap.
Banks have their own set of rules when issuing loans and require proper documents and collateral as security against loans. Most of the times the small farmers lack in providing such documents and collateral. Sometimes because of uncertain nature of the monsoon and crops, they even fail to make timeRead more
Banks have their own set of rules when issuing loans and require proper documents and collateral as security against loans. Most of the times the small farmers lack in providing such documents and collateral. Sometimes because of uncertain nature of the monsoon and crops, they even fail to make timely repayments. Repayment of the loan is crucially dependent on the income from farming. Therefore, banks sometimes are unwilling to lend to small farmers.
Manav will decide whether to borrow from the bank or the money lender on the basis of the following terms of credit: • Reasonable rate of interest • Collateral security demanded and documentation required by the banker. • Mode and schedule of repayment of principal and loan. The penalty and repercusRead more
Manav will decide whether to borrow from the bank or the money lender on the basis of the following terms of credit:
• Reasonable rate of interest
• Collateral security demanded and documentation required by the banker.
• Mode and schedule of repayment of principal and loan. The penalty and repercussions applicable in case of default in repayment.
Terms of repayment are different of bank and the money lender. Whichever he finds easier he can consider that. Depending on these factors and of course, easier terms of repayment, Manav has to decide whether he has to borrow from the bank or the moneylender.
Suggest some ways by which small farmers can get cheap credit.
The small farmers can get cheap credit from different sources like – Banks, Agricultural Cooperatives, and SHGs. For more answers visit to website: https://www.tiwariacademy.com/ncert-solutions/class-10/social-science/
The small farmers can get cheap credit from different sources like – Banks, Agricultural Cooperatives, and SHGs.
For more answers visit to website:
See lesshttps://www.tiwariacademy.com/ncert-solutions/class-10/social-science/
Explain with an example how the terms of credit can be unfavorable for the small farmer.
The terms of credit can be unfavourable for the small farmer which can be explained by the following – a small farmer borrows from a local moneylender at a high rate of interest of 10 percent to grow rice. But the crop is hit by drought and it fails. As a result, farmer has to sell a part of the lanRead more
The terms of credit can be unfavourable for the small farmer which can be explained by the following – a small farmer borrows from a local moneylender at a high rate of interest of 10 percent to grow rice. But the crop is hit by drought and it fails. As a result, farmer has to sell a part of the land to repay the loan. He is caught in a debt trap.
For more answers visit to website:
See lesshttps://www.tiwariacademy.com/ncert-solutions/class-10/social-science/
Explain with an example how the terms of credit can be unfavorable for the small farmer.
Apart from bank, the small farmers can borrow from local money lenders, agricultural traders, big landlords, cooperatives and SHGs etc. Borrowing from middlemen and moneylenders is not always favourable and they end up in a debt trap. For more answers visit to website: https://www.tiwariacademy.com/Read more
Apart from bank, the small farmers can borrow from local money lenders, agricultural traders, big landlords, cooperatives and SHGs etc. Borrowing from middlemen and moneylenders is not always favourable and they end up in a debt trap.
For more answers visit to website:
See lesshttps://www.tiwariacademy.com/ncert-solutions/class-10/social-science/
Why might banks be unwilling to lend to small farmers?
Banks have their own set of rules when issuing loans and require proper documents and collateral as security against loans. Most of the times the small farmers lack in providing such documents and collateral. Sometimes because of uncertain nature of the monsoon and crops, they even fail to make timeRead more
Banks have their own set of rules when issuing loans and require proper documents and collateral as security against loans. Most of the times the small farmers lack in providing such documents and collateral. Sometimes because of uncertain nature of the monsoon and crops, they even fail to make timely repayments. Repayment of the loan is crucially dependent on the income from farming. Therefore, banks sometimes are unwilling to lend to small farmers.
For more answers visit to website:
See lesshttps://www.tiwariacademy.com/ncert-solutions/class-10/social-science/
Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.
Manav will decide whether to borrow from the bank or the money lender on the basis of the following terms of credit: • Reasonable rate of interest • Collateral security demanded and documentation required by the banker. • Mode and schedule of repayment of principal and loan. The penalty and repercusRead more
Manav will decide whether to borrow from the bank or the money lender on the basis of the following terms of credit:
• Reasonable rate of interest
• Collateral security demanded and documentation required by the banker.
• Mode and schedule of repayment of principal and loan. The penalty and repercussions applicable in case of default in repayment.
Terms of repayment are different of bank and the money lender. Whichever he finds easier he can consider that. Depending on these factors and of course, easier terms of repayment, Manav has to decide whether he has to borrow from the bank or the moneylender.
For more answers visit to website:
See lesshttps://www.tiwariacademy.com/ncert-solutions/class-10/social-science/