The Story Of Village Palampur

Question

On what terms did Savita get a loan from Tajpal Singh? Would Savita’s condition be different if she could get a loan from the bank at a low rate of interest?

Answer

Savita got a loan of Rs. 3,000/- from Tajpal Singh at an interest rate of 24 percent for four months, which is very high interest rate. Savita also has to promise to work on Tajpal Singh's field as a farm labourer during the harvest season at Rs. 35 per day.

As we can see, this wage is quite low. Savita knows that she will have to work very hard to complete the harvesting on her own field, and then work as a farm labourer for Tajpal Singh. The harvest time is very busy time. As a mother of three children she has a lot of household responsibilities. Savita agrees to these tough conditions as she knows getting a loan is difficult for a small farmer.

Savita’s condition would be different if she could get a loan from the bank at a low rate of interest. From Bank's loan she has not to work at such a quite low wage rate.

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