How debts mounted In a petition to the Deccan Riots Commission a ryot explained how the system of loans worked: A sowkar lends his debtor 100 on bond at 3-2 annas per cent per mensem. The latter agrees to pay the amount within eight days from the passing of the bond. Three years after the stipulated time for repaying the amount, the sowkar takes from his debtor another bond for the principal and interest together at the same rate of interest, and allows him 125 days' time to liquidate the debt. After the lapse of 3 years and 15 days a third bond is passed by the debtor ... (this process is repeated) at end of 12 years .... his interest on 1,000 amounts to 2,028-10 annas-3 paise. How do you think that the way of borrowing money by the ryots brought misery to them?

How debts mounted In a petition to the Deccan Riots Commission a ryot

1.	How debts mounted In a petition to the Deccan Riots Commission a ryot explained how the system of loans worked: A sowkar lends his debtor 100 on bond at 3-2 annas per cent per mensem. The latter agrees to pay the amount within eight days from the passing of the bond. Three years after the stipulated time for repaying the amount, the sowkar takes from his debtor another bond for the principal and interest together at the same rate of interest, and allows him 125 days' time to liquidate the debt. After the lapse of 3 years and 15 days a third bond is passed by the debtor ... (this process is repeated) at end of 12 years .... his interest on 1,000 amounts to 2,028-10 annas-3 paise. How do you think that the way of borrowing money by the ryots brought misery to them?
Answer» Solution :Over TIME, the ryots and peasants came to associate the misery of their lives with the NEW regime of bonds and deeds. They were made to sign and put thumb impressions on documents, but they did not know what they were actually signing. They had no idea of the clauses that MONEYLENDERS inserted in the bonds. They feared the written word. But they had no choice because to survive they needed LOANS, and moneylenders were UNWILLING to give loans without legal bonds.