what kind of credit today Indian farmers need ?Bring out any significance and implications of non institutional credit?
In response to the first part of your query, a similar question has already been answered by our expert. Follow the given link to view the same.
https://www.meritnation.com/ask-answer/question/why-the-farmers-need-credit-explain-the-various-sources/unit-iii-rural-development/3335420
In response to the second part of your query, non-institutional sources of credit contribute a significant share in the total credit available to the indian farmers. The ease of availability and personal interactions with the private moneylenders are the key reasons that farmers usually prefers non-institutional sources of credit.
However, such sources, being unmonitored by government and law to a great extent, allow private moneylenders to charge higher interest rate leading the farmers into a debt cycle. if the farmer has a bad crop, he is forced to either surrender his collateral or sell off a part of his land , in order to repay his loan.
https://www.meritnation.com/ask-answer/question/why-the-farmers-need-credit-explain-the-various-sources/unit-iii-rural-development/3335420
In response to the second part of your query, non-institutional sources of credit contribute a significant share in the total credit available to the indian farmers. The ease of availability and personal interactions with the private moneylenders are the key reasons that farmers usually prefers non-institutional sources of credit.
However, such sources, being unmonitored by government and law to a great extent, allow private moneylenders to charge higher interest rate leading the farmers into a debt cycle. if the farmer has a bad crop, he is forced to either surrender his collateral or sell off a part of his land , in order to repay his loan.