On what terms did Savita get a loan from Tejpal Singh? Would Savita's condition be different if she could get a loan from the bank at a low rate of interest?
Savita required money for buying seeds, fertilisers and pesticides, and water for irrigation. She also needed money for repairing her farm instruments. So, she decided to borrow money from Tejpal Singh, a large farmer in her village. Tejpal Singh agreed to give the loan of Rs. 3000 at an interest rate of 24 per cent for four months. He also got her to agree to work on his field during the harvest season for Rs. 35 a day.
Savita’s condition would have been better if she could get a loan from the bank. The bank would have provided her the loan at a low rate of interest. Moreover, Savita could have devoted more time on her own field instead of working for Tejpal Singh as farm labourer.
