Small farmers borrow money for cultivation from _____.

traders

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family members

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banks

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money lenders.

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Solution

The correct option is C money lenders.
Small farmers borrow money for cultivation from money lenders.
They borrow money from money lenders because they don't have any form of security (collateral) as requested by the formal sources of credit.
Small farmers often get exploited with higher interest from money lenders.

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Similar questions

In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.

(a) Why might banks be unwilling to lend to small farmers?

(b) What are the other sources from which the small farmers can borrow?

(d) Suggest some ways by which small farmers can get cheap credit.

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