Name: Land Limitations in the Village of Palampur
Uploaded: 2019-07-19
Duration: 6 min 26 s
Description: There is a major factor that limits crop production. How does the village of Palampur manage to use this to its benefit?

Question

On what terms did Savita get a loan from Tajpal Singh? Would Savita's condition be different if she could get a loan from the bank at a low rate of interest?

Accepted Answer

Savita is a marginal farmer with one hectare of land. She needs money to arrange for inputs to cultivate her land. So she borrowed Rs $3, 000$ from the large farmer of the Village, Mr. Tejpal. She agreed to the conditions of paying $24 %$ interest for four months on Rs $3, 000$ along with the other conditions such as working on the farmland of Tejpal as a farm labourer for Rs $100 / -$ per day during the harvest season, which is a very low wage as compared to the wages fixed by the government.

Yes, Savita's condition would be different if she had borrowed the loan from the bank. Since the bank charges a very low-interest rate with easy instalments, which would have helped her to earn and save better from her farming activity.

On what terms did Savita get a loan from Tajpal Singh? Would Savita's condition be different if she could get a loan from the bank at a low rate of interest?

Important Questions on The Story of Village Palampur

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