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  1. Asked: In:

    What are the reasons why the banks might not be willing to lend to certain borrowers?

    Yajat

    Banks require proper and legal documentations and collateral as security against loans. The borrowers who have not repaid previous loans, the banks might not be willing to lend them further. Those entrepreneurs, who are going to invest in a business with high risks, the might not be willing to lendRead more

    1. Banks require proper and legal documentations and collateral as security against loans. The borrowers who have not repaid previous loans, the banks might not be willing to lend them further.
    2. Those entrepreneurs, who are going to invest in a business with high risks, the might not be willing to lend money.

    For more answers visit to website:
    https://www.tiwariacademy.com/ncert-solutions/class-10/social-science/

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    • 10
  2. Asked: In:

    Review any three merits and any two demerits of ‘formal sector of credits’ in India.

    Yajat

    Merits Helps to meet the working capital needs of production. Helps in completing production on time. Low interest rate. Helps in increasing earnings. Demerits Difficulty in obtaining loans. Collateral issues. Documentation could be a problematic issue for few. For more answers visit to website: httRead more

    Merits

    1. Helps to meet the working capital needs of production.
    2. Helps in completing production on time.
    3. Low interest rate.
    4. Helps in increasing earnings.

    Demerits

    1. Difficulty in obtaining loans.
    2. Collateral issues.
    3. Documentation could be a problematic issue for few.

    For more answers visit to website:
    https://www.tiwariacademy.com/ncert-solutions/class-10/social-science/

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    • 7
  3. Asked: In:

    How do farmers gets into debts trap?

    Yajat

    1. Failure of the crop makes loan repayment impossible. 2. Downfall of crop prices also makes loan repayment impossible. 3. Higher interest makes life difficult. Credit in such a condition pushes the borrowers into a situation from which recovery is painful and they get into the debt trap.   FoRead more

    1. Failure of the crop makes loan repayment impossible.
    2. Downfall of crop prices also makes loan repayment impossible.
    3. Higher interest makes life difficult. Credit in such a condition pushes the borrowers into a situation from which recovery is painful and they get into the debt trap.
     

    For more answers visit to website:
    https://www.tiwariacademy.com/ncert-solutions/class-10/social-science/
     

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    • 10
  4. Asked: In:

    The credit activities of the informal sector should be discouraged. Support your statement with relevant arguments.

    Yajat

    Informal lenders charge very high interest on their loans. There are no boundaries and restrictions. In certain cases, the high interest rate for borrowing can mean that the amount to be repaid is greater than the income of the borrowers. This could lead to increasing debt trap, therefore the creditRead more

    1. Informal lenders charge very high interest on their loans.
    2. There are no boundaries and restrictions.
    3. In certain cases, the high interest rate for borrowing can mean that the amount to be repaid is greater than the income of the borrowers.
    4. This could lead to increasing debt trap, therefore the credit activities of the informal sector should be discouraged.

    For more answers visit to website:
    https://www.tiwariacademy.com/ncert-solutions/class-10/social-science/

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    • 10
  6. Asked: In:

    How is the concept of Self Help Group important for poor people? Give your view points.

    Yajat

    SHG's basic idea is to provide financial resource for the poor through organizing the rural poor especially women, into small Help Groups. It organizes the rural poor, especially women, into small Self Help Groups. It collects saving of the members. it provides loans without collateral. It providesRead more

    1. SHG’s basic idea is to provide financial resource for the poor through organizing the rural poor especially women, into small Help Groups.
    2. It organizes the rural poor, especially women, into small Self Help Groups.
    3. It collects saving of the members.
    4. it provides loans without collateral.
    5. It provides timely loans at reasonable rate of interest.
    6. It also provides a platform to discuss various social issue.

    For more answers visit to website:
    https://www.tiwariacademy.com/ncert-solutions/class-10/social-science/

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    • 9