At the time of independence, moneylenders and traders exploited small and marginal farmers and landless labourers. Which of the following was NOT one of the ways in which they did so?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Refusing to lend to them at all
Moneylenders did lend to poor farmers. The harm came from how they lent.
Option (1) Lending to them at high interest rates — True. Loans carried high interest.
Option (2) Manipulating the accounts — True. They altered accounts to show more debt.
Option (3) Keeping them in a debt-trap — True. Farmers could never clear the loan.
Option (4) Refusing to lend to them at all — False. They did lend, so refusing to lend was not one of the ways.
NCERT (2026-27): “5.3 Credit and Marketing in Rural Areas … As the time of gestation period between crop sowing and realisation of income after production is quite long, farmers borrow from various sources to meet their initial investment on seeds, fertilisers, implements and other family expenses of marriage, death, religious ceremonies etc. At the time of independence, moneylenders and traders exploited small and marginal farmers and landless labourers by lending to them on high interest rates and by manipulating the accounts to keep them in a debt-trap. A major change occurred after 1969 when India adopted social banking and multi-agency approach to adequately meet the needs of rural credit. …” |