AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Farmers need loans at the beginning of the crop season to meet the expenses of cultivation — such as seeds, fertilisers, pesticides, water, and equipment — since there is a gap of three to four months before they can sell the crop and earn income.
Source: Chapter 3, Two Different Credit Situations
The key point is the time gap between spending on inputs and receiving income from the harvest. Examiners expect you to mention "expenses of cultivation" and the fact that repayment happens only after harvest. Naming a few examples of inputs (seeds, fertilisers) strengthens the answer even in one line.