On whatterms did Savita get a loan from Tejpal Singh? Would Savita’scondition be different if she could get a loan from the bank at a lowrate of interest?
On whatterms did Savita get a loan from Tejpal Singh? Would Savita’scondition be different if she could get a loan from the bank at a lowrate of interest?
Savitarequired money for buying seeds, fertilisers and pesticides, andwater for irrigation. She also needed moneyfor repairing her farm instruments. So, she decided to borrow moneyfrom Tejpal Singh, a large farmer in her village. Tejpal Singh agreedto give the loan of Rs. 3000 at an interest rate of 24 per cent forfour months. He also got her to agree to work on his field during theharvest season for Rs. 35 a day. Knowing that it was difficult for asmall farmer like herself to get a loan, she agreed to these toughconditions.
Ifshe could get a loan from a bank, then her situation would definitelyhave been different. First of all, she would have got the loan at areasonable rate of interest. Secondly, she would have been able tofocus her entire attention on her farm. She would also have been ableto devote more time to the needs of her family members, especiallythose of her three children.
Savitarequired money for buying seeds, fertilisers and pesticides, andwater for irrigation. She also needed moneyfor repairing her farm instruments. So, she decided to borrow moneyfrom Tejpal Singh, a large farmer in her village. Tejpal Singh agreedto give the loan of Rs. 3000 at an interest rate of 24 per cent forfour months. He also got her to agree to work on his field during theharvest season for Rs. 35 a day. Knowing that it was difficult for asmall farmer like herself to get a loan, she agreed to these toughconditions.
Ifshe could get a loan from a bank, then her situation would definitelyhave been different. First of all, she would have got the loan at areasonable rate of interest. Secondly, she would have been able tofocus her entire attention on her farm. She would also have been ableto devote more time to the needs of her family members, especiallythose of her three children.
