ADVERTISEMENTS:
Rural indebtedness is having many evil consequences. It comes in the way of social change and progress. The nine major consequences of indebtedness are 1. Increase in Poverty 2. Slavery and Bonded Labour 3. Problem of Health 4. Loss of Social Prestige 5. Deterioration of Agriculture 6. Psychological Problems 7. Lowering of Economic Standard and Others.
Consequence # 1. Increase in Poverty:
Most explicit result of Indebtedness Is the Increase in the poverty of the poor people.
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Poverty becomes their life-long companion. Due to indebtedness they are not in a position to save money and become poorer.
Once he becomes entangled in debt, he remains poor, no matter how much he may exert himself.
Consequence # 2. Slavery and Bonded Labour:
Indebtedness is resulted into slavery and bonded labour. Due to fulfillment of the social obligation, in order to repay the ancestral debt, the poor farmer falls in prey to slavery and bonded labour.
Consequence # 3. Problem of Health:
Rural indebtedness leads to the poor health of the debtor. Due to poverty and indebtedness the farmer cannot have any nourishing diet and good food. They also cannot afford to have medical facilities for themselves and for their children. All these leads to lowering of their health standard.
Consequence # 4. Loss of Social Prestige:
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Due to indebtedness the farmer feels himself very much inferior in front of the moneylenders or sahukars. So it becomes his loss of social prestige.
Consequence # 5. Deterioration of Agriculture:
As a result of indebtedness, the condition of agriculture also deteriorated, because most of the farmers had to work on their moneylenders land as servants. The farmers also cannot give proper attention to the lands where they have cultivated. So it leads to the deterioration of agriculture.
Consequence # 6. Psychological Problems:
The effect of indebtedness leads to frustration, depression, mental imbalance and mental conflict of the poor farmer. Due to heavy burden of loan, the farmers are neither able to repay the loan nor able to improve their economic condition. They remain in a dilemma. Sometimes they commit suicide out of extreme frustration.
Consequence # 7. Lowering of Economic Standard:
Due to indebtedness, farmers’ purchasing power are reduced, they cannot meet their own and their family’s basic need. With this, economic standard of the fanner considerably comes down and down.
Consequence # 8. In-dignified Exploitation of Man by Man:
Due to ignorance and illiteracy the farmer easily falls into the prey of the moneylender. The moneylender tries to exploit him in many ways. Due to lower social prestige, he cannot raise his voice against the moneylender. So, indebtedness results in In-dignified exploitation of man by man. At times even the whole family of the borrower is forced to work for the moneylender.
Consequence # 9. Increase in Landless Labour:
Increase in landless labour is also because of rural indebtedness. Once a farmer is in the trap of the moneylenders, gradually the amount with Interest goes on increasing. A stage comes when the poor farmer has no other alternative but to sell his small piece of land to the moneylender and joins the ranks of landless labour.