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Asked: 2023-12-29T11:22:59+00:00 In:

Mr.Y needs a loan for buying fertilisers to enhance crop production.He borrows loan from a bank as it is

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Poll Results

37.34%a) Only i ( 255 voters )
4.39%b) Iii and iv ( 30 voters )
54.03%c) i and ii ( 369 voters )
4.25%d) Only ii ( 29 voters )
Based On 683 Votes

Participate in Poll, Choose Your Answer.

i)Cheap and affordable since rate of interest is lower
ii)free from falling into a debt trap
iii) going to ask him to sell his property
iv) free of interest

CBSE Sample paper 2023-24
NCERT Class 10 Social Science

class 10 social sciencelatest sample paper 2023-24
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    1 Answer

    1. Mr. Y opts for a loan from a bank primarily due to two reasons:
      i) Cheap and affordable since the rate of interest is lower: Banks usually offer loans at a lower interest rate compared to other informal sources of credit, making it a cost-effective option for borrowing funds. This affordability reduces the financial burden on the borrower.

      ii) Free from falling into a debt trap: Bank loans often come with structured repayment plans and regulated interest rates, reducing the risk of falling into a debt trap. Structured repayments ensure that the borrower can manage the loan without facing overwhelming financial stress, thereby avoiding a debt trap.

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