What was 'Taccavi'?

What was 'Taccavi'? Correct Answer Loans to the Peasants

The correct answer is Loans to the Peasants.

Important Points

• Taccavi loan was a short-term loan given to poor farmers to purchase seeds, fertilizers, equipment and for other agriculture purposes.
  • Taccavi loans and are lent by the Government during emergencies or distress like famine, flood, etc.
  • This was introduced to enhance the productivity of crop cultivation and help poor farmers to increase the income.
  • They were specifically granted to tackle damage of crops due to natural calamities and other forms of crisis like drought.
  • It was introduced in the late 1950s.
    • It was an important agricultural institution during Mughal times.
  • The rate of interest charged against such a loan is as low as 6%.