Introduction

The supply of informal credit is recognised to be an extremely important component of overall credit provision in India. Habib (1964) in his analysis of usury in the medieval Indian economy demonstrates the long history of moneylending in the sub-continent. Numerous studies (e.g. Bailey 1964; Desai 1979; Michie 1978; Timberg and Aiyar 1984) show the continued importance of such moneylending practices in both the rural and urban areas of India. However, it is also recognised that there is little precise data to give us an accurate economic account of the extent and operations of the informal credit markets.

A similar situation exists with regard to Jain studies. The Jains are rightly regarded as an important and very influential merchant community in India. However, apart from rather general studies of Jain ethics and business practices we have no detailed economic accounts of their business and commercial activities. Furthermore, this paucity of economic information is particularly pronounced with respect to the many Jain communities in the rural areas of India. Carrithers and Humphrey (this volume) have identified five criteria by which they feel the Jains may be described as a community.