Question.
The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.
Next, classify the people into two groups based on whom you think might get a bank loan and those who might not. What is the criterion that you have used for classification?
The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.
Next, classify the people into two groups based on whom you think might get a bank loan and those who might not. What is the criterion that you have used for classification?
Solution:
The criterion I have used for the aforementioned classification is firstly, whether the borrower has the potential to repay the loan or not. Those with job security will certainly get a loan because they have the capability to give repayment instalments. The second basis of classification is whether the borrower has a collateral or not, on which to guarantee his/her loan. These two are the basic prerequisites for getting a loan from a bank.
The criterion I have used for the aforementioned classification is firstly, whether the borrower has the potential to repay the loan or not. Those with job security will certainly get a loan because they have the capability to give repayment instalments. The second basis of classification is whether the borrower has a collateral or not, on which to guarantee his/her loan. These two are the basic prerequisites for getting a loan from a bank.
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