Choose given statement is true/false:

Small farmers never take loans from money lenders.

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True

False

answer is B.

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Detailed Solution

The above statement is False.
Moneylenders have long controlled India's vast rural agricultural sector, and they continue to be the foundation of the country's rural banking system. Small farmers borrow money from lenders because they lack the resources to handle their agricultural tasks independently. As a result, finance relies on formal and informal institutions. Farmers who fall into the moneylending trap are forced into a high-stakes bet. In the hope that one day a big harvest will allow them to pay off their obligations so they can take out new loans, they juggle huge loans with hazy interest rates.
The correct statement would be small farmers take loans from money lenders.

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