Question

Generally, repayment of short-term loans is considered:

• A. During the cropping season
• B. After the harvest
• C. At the time of land preparation
• D. Before sowing

Answer 1

Answer:

B. After the harvest

Short-term loans are usually taken by farmers to meet immediate agricultural needs such as purchasing seeds, fertilizers, pesticides, and paying labor charges. Farmers generally do not have sufficient income during the cropping season. Their main source of income comes after harvesting, when crops are sold in the market. Therefore, repayment of short-term loans is scheduled after the harvest, when farmers are financially capable of repaying the loan.They make this anticipated crop as security e.g.. crop loans