Q10 of 11 Page 87

Read the paragraphs under the header ‘Types of Loans’ and answer the following:

What sort of loans are more in your area?

In my area, the housing loan is more prominent. In this type of loan, the individual acquire the loan with certain amount of interest to buy the house or flat. For this, the individual has to mortgage the flat. A Certain amount of interest will get deducted from the borrower’s salary every month and will be paid to the bank. This way after full repayment of the loan the individual can obtain the ownership of the flat she bought.

It depends upon the area that which types of loan is more prominent. My city is the developing one because of which there is an increasing demand of housing loan.


More from this chapter

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7

If many loans are written off (that is, borrowers are not required to pay back the money) how will this affect the working of the bank?

 8

People have to pay a higher interest on loan than the interest they receive on a fixed deposit for the same time-period. Why do you think this is so?

 9

Suppose this year the rains are poor and the crop yield is only half as much as was originally expected. Some people say that if this happens the farmers should be asked to pay back only half the amount they have taken as loans. However other people say that full amount should be repaid, keeping in view the next year’s crop. In your opinion what should the bank do and why?

 11

Do you feel that the loans taken from SHGs are helpful to the members? How?