Compare the terms of credit for the small farmer, the medium farmer and the landless agricultural worker in Sonpur.

Small farmers: They are usually unable to provide collateral and given loans by local money lenders. The terms are:

• High rate of interest of five per cent per month (60% per annum).
• Repayable in a year.

Medium farmer: They provide land or farm machines as collateral. They usually avail loan from commercial banks. The terms are:

• Low rate of interest i.e. 8.5 per cent per annum
• Loan can be easily paid in the next 2-3 years.

Landless agricultural workers of Sonpur: The terms are:

• Borrowers pay their debt by working on land of their moneylenders or landowners so that in future again they will be able to borrow from that person in need.
• The rate of interest is high i.e 5% per month.