Regarding Taqavi loans, which of the following statements are NOT correct?

(i) These were given to peasants for agricultural purposes.

(ii) These were given to traders for trade purposes.

(iii) These were advanced through the Chaudhuris and Muqaddams, who distributed them among the individual peasants

(iv) Chaudhuris and Muquaddams did not stand surety for their repayment.

Choose the correct answer from the options given below:

The incorrect statements are (ii) and (iv) only. Key Points

• Taccavi or Taqavi loan was a short-term loan given to poor farmers to purchase seeds, fertilizers, equipment and for other agriculture purposes. Hence, statement 1st is correct.
• Statement 2nd -These were given to traders for trade purposes is contradictory to the first statement.
• This was introduced to enhance the productivity of crop cultivation and help poor farmers to increase their income.
• Taqavi was an important agricultural institution during Mughal times.
• When agriculture was affected by any natural calamities such as floods, drought, and epidemics the Mughal government used to suspend or minimise revenue collections and furthermore, made taqavi advance towards reviving the farming strength of the peasantry.
• Its distributing agents were the zamindars and talukdars who were advised to lend taqavi to raiyats and make necessary adjustments on account of public revenue.
• Such loan was always free from any surcharge like modern interest. 
• These were advanced through the Chaudhuris and Muqaddams, who distributed them among the individual peasants. Hence, statement 3rd is correct.
• Statement that Chaudhuris and Muquaddams did not stand surety for their repayment is not true because there was no evidence of non-payment of these loans.