Q18 of 30 Page 1

Dhananjay is a government employee and belongs to a rich household whereas Raju is a construction worker and comes from a poor rural household. Both are in need and wish to take a loan. Create a list of arguments explaining who between the two would successfully be able to arrange money from a formal source. Why?

Dhananjay will be successfully able to arrange money from a formal source while Raju will face difficulty in obtaining loan formally.

The arguments for the above conclusion are:


• Since Dhananjay is a government employee, it will be easier for formal organizations like banks to recover the loan through his salary. While Raju doesn't have a regular income, so the banks will be reluctant to provide him with a loan.


• Dhananjay is also in a position to provide collateral or security against the loan while Raju is not in the position.


Thus, the financial situation of Dhananjay is better than Raju which makes it easier for Dhananjay to get a loan.


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