-TwoCircles.net
Punjab is considered to be one of the most prosperous states in India.A study came out a few days ago that states that 98% of rural households are in debt.The average amount of debt per household is close to 5 Lakh Rupees. The report points out that more than half of the debt is to non institutional lenders,the Arhtias,the middlemen and money lenders.Small and marginal farmers can not go to the banks and other lending institutions,so these loansharks charge them interest rates upto 60% per annum on the amounts borrowed which is annually compounded.
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