Why do farmers deliberately refuse to pay back loans?

In India, results of crops highly depend on monsoons. Farmers invest heavily on crops by taking loans. If the crop fails due to lack of rains or insufficient market demand, farmers will get trapped in debt.

Under which circumstances for farmers find themselves unable to pay back their loans 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.

How do medium and large farmers obtain capital for farming How is it different from small farmers Class 9?

(i) The medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed. (ii) In contrast, the small farmers have to borrow money to arrange for the capital.

Who provide loans to the farmers?

Top 7 banks providing easy loans to farmers

• State Bank of India (SBI) State Bank of India (SBI) is the pioneer and market leader in Agri financing.
• ICICI Bank. Through the ICICI Bank agriculture loan, the farmers can purchase farm animals or agricultural equipment.
• HDFC Bank.
• Axis Bank.

Why do farmers need credit or loans?

Answer: Farmers need credit in order to meet their personal and most importantly to carry out farming. Hence in order to improve irrigation facility, farmers take credit. In order to increase the yield, farmer need modern equipment and tools backup with quality fertizilers , pesticides , insecticides etc.

What happened to the farmers who borrowed money?

Farmers who had borrowed money to expand during the boom couldn’t pay their debts. As farms became less valuable, land prices fell, too, and farms were often worth less than their owners owed to the bank. Farmers across the country lost their farms as banks foreclosed on mortgages.

What could happen to farmers who did not pay their debts?

As a result local sheriffs seized many farms and some farmers who couldn’t pay their debts were put in prison. These conditions led to the first major armed rebellion in the post-Revolutionary United States.

How do small farmers obtain capital for farming what is its consequences explain?

Small farmers obtain capital for farming by borrowing capital or money from big farmers or money lenders to obtain capital for farming who supply various inputs and money for cultivation. Consequences- The rate of interest on such loans is very high, which put the small farmers into great distress to repay the loan.

How do the small farmers arrange money for different farming activities why the situation is different for the medium and large farmers?

(i) The medium and large farmers have their own savings from farming. (ii) In contrast, the small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation.

Can a farmer get personal loan?

Generally all farmers, joint cultivators, sharecroppers, SHGs, JLGs and tenant farmers can avail an agricultural loan.

Why do farmers need credit or loan?