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Q.

Moneylenders charge ____ interest rates from  landless farmers.


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Detailed Solution

Moneylenders charge high-interest rates from landless farmers or daily wagers.
Farmers take loans from moneylenders or big farmers because banks require collateral and other documentation, which the farmers can't afford. Moneylenders charge a high rate of interest. Moneylenders exploit the borrowers by charging very high-interest rates. If the borrower fails to repay the loan on time, he is forced to take another loan to repay the previous one. This cycle goes on, leading the farmer into a debt trap.
To avoid this situation, one can borrow from banks or cooperatives at low-interest rates to avoid high-interest rates. In banks, their money is secure, and low-interest rates are charged.
 
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