The small farmers and landless labourers usually end up taking loans from the large farmers, to meet their basic needs. However, instead of helping them, taking loans add to their misery in the following ways:
1. The large farmers give them loans on extremely high interest rates.
2. The small farmers and labourers are not able to collect enough money and end up taking more loans to pay the previous one. Thus, they get caught in a vicious circle.
Thus, the loans benefit the large farmers instead of the small farmers and landless labourers.