how do villagers enter into debt in rural areas?
Dear student,
Please find below the solution the asked query.
Please find below the solution the asked query.
- In rural areas credit is taken mainly for farming and purposes. The repayment of such loans is dependent on the income from farming. However, in situations such as crop failure, loan repayment becomes difficult and the individual incurs fresh debt just to repay the earlier debt, thereby, falling in a debt-trap.
- For example-Hari,a small farmer in a village takes a loan from moneylender to meet the expenses of cultivation ,hoping that his harvest would help to repay the loan but due to drought the crops fails and he is unable to repay the moneylender and he caught in debt trap.
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