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. For what purpose did ryots get loans from money lenders?

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. For what purpose did ryots get loans from money lenders?
Answer» Solution :They needed loans even to buy their everyday NEEDS and meet their production expenditure. Cakivators required loans for extending their average, moving into new areas, and transforming pasture land into cultivated fields. But to expandcultivation peasants needed more ploughts and CATTLE. They needed MONEY to buy seeds and land. For this they had to TURN to the moneylenders for loans,