The state depended on and for loans.

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Detailed Solution

The state depended on local bankers and Mahajan for loans. Burhan-ul-Mulk tried to lessen the number of office holders (jagirdars) appointed by the Mughals in the Awadh province. For loans, the state turned to the Mahajans and local bankers. To the highest bidders, it offered the right to collect taxes. These "revenue farmers" (ijaradars) consented to give the government a set payment. Local bankers provided the state with a payment guarantee for this agreed-upon sum. In exchange, the tax assessment and collection processes granted significant freedom to the revenue farmers. The state's income system management might now be influenced by new social groupings, such as moneylenders and bankers, which was before impossible.

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