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Question

How can a loan taken by a farmer lead him to losing his land?

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Solution

Small farmers often take loan from rich landlords, moneylenders, traders or shopkeepers to buy seeds, fertilisers and pesticides. Sometimes, due to bad monsoons or pest attacks, their crop does not turn out good. This forces them to borrow even more money. They have to repay the loan by mortgaging and selling their land, thus, loosing it.

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