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.


Correct fill the given table is as follows:


Occupations



Reason for needing a Loan



Construction worker



To meet living expenses



Graduate student who is computer literate



To pursue higher education



A person employed in government service



For his/her daughter’s wedding



Migrant labourer in Delhi



To buy a house



Household maid



To meet living expenses



Small trader



To buy new machinery



Auto rickshaw driver



To buy a new auto rickshaw



A worker whose factory has closed down



To meet living expenditure while still unemployed







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?


Those who might get a bank loan



Those who might not get a bank loan



Graduate student



Construction worker



A person employed in government service



Migrant labourer in Delhi



Small trader



Household maid



Auto-rickshaw driver



A worker whose factory has closed down







The criterion which is used to categorize the above mentioned things, that first to check whether the borrower has the potential to repay the loan or not. And with job security they will certainly get a loan from bank because they have the capability of paying the debts in installments. The second basis is that whether the borrower has collateral or not and on what guarantee he will be lent. These two are the basic prerequisites for getting a loan from a bank.



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