Hello! I am Savita, a small farmer planning to cultivate wheat on my 1 hectare of land. But, I don't have the enough money to buy all the materials required for cultivation with HYV seeds.
I would need a minimum of RS. 3000 for working capital itself. Ok! I have made up my mind to borrow money from Tejpal, a large farmer.
Isn't that a high interest rate? Hmm, Yes it is.. I must do something then..
Ok Savita. I do understand your situation. I will give you a loan at an interest rate of 24 % for 4 months.
Tejpal Saab, it's a very high interest rate, so I promise to work for you on your field during harvesting for RS. 50 everyday.
Hmm, ok..Thank you Tejpal Saab.
I will give you only Rs. 35 everyday..Ok, thank you Savita
As a result, Savita has to work on her field everyday and then work as a farm labourer for Tejpal Singh. As we all know, this is quite difficult for her.
She is also a mother of 3 children and has her own responsibilities.
This story tells us how difficult it is for a small farmer like Savita to get a loan for her needs from a large farmer like Tejpal.