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 The Dadni system

The Mughal Empire saw significant growth in trade and commerce, and the Dadni system was one of the ways that loans were provided to merchants and craftsmen.

The system allowed for advance money to be given to craftsmen, who would then prepare goods for traders, with the borrowed money being placed in the form of material on ships leaving for a particular destination.

Dadni system became prevalent in medieval India because It gave impetus to both inland and foreign trade.

The lender would charge a higher interest rate due to the risk involved in lending money in this manner.


Therefore, we can conclude that Dadni system became prevalent in medieval India because It gave impetus to both inland and foreign trade.


Kamiyati system

Under this system, prevalent in Bihar and Orissa, the people of the Kamiya caste, who used to do farming as agricultural slaves, used to serve their owners throughout their life in exchange for the amount of interest given on the loan received.

Tinkathiya pratha

In this practice, prevalent in the Champaran (Bihar) region, farmers were required to cultivate indigo on the 3/20 part of the land as per the contract with the English planters.

Hali system 

Under this practice, prevalent in the western region of India, mainly in the Surat (Gujarat), the Hali landowners used to consider their owners as the protector of their property and themselves.

Girmitiya system

In this practice, started in the third decade of the 19th century, Indian workers had to work abroad for 5 or 7 years under an agreement. 

This agreement was called Girmit and this practice was called Girmitiya system.

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