Borrowing Practices of Farmers in Chambar, Pakistan
The market town of Chambar in southeastern Pakistan is a financial hub for local farmers who commonly borrow money. This borrowing serves two main purposes: investment and consumption. For investment, farmers take loans at the start of the planting season to purchase inputs like fertilizer, or to buy equipment that can improve crop yields. For consumption, they borrow to cover personal expenses such as medical bills or significant life events like weddings. These farmers typically rely on local moneylenders rather than formal banks, with loans structured for repayment after the next harvest.
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The Economy 2.0 Microeconomics @ CORE Econ
Ch.9 Lenders and borrowers and differences in wealth - The Economy 2.0 Microeconomics @ CORE Econ
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