Q.:- Compare the terms of credit for the small farmer, the medium farmer and the landless agricultural worker in Sonpur.
(a) Terms of credit for small farmer
• High rate of interest.
• Promise to sell crops to traders at low prices as repayment of loan.
(b) Terms of credit for medium farmer.
• They can take loans from banks or from co-operatives who charge very low rate of interest.
• Loan can be paid back in the next three years.
(c) Landless agricultural workers in Sonpur
• Borrower has no means to repay the loan in cash. So, he pledges to repay loans by working for the landowner
• Rate of interest is high.