Question

A farmer wants to buy a house worth Rs.20 lakhs and needs to
borrow money. He approaches a nearby bank for taking a loan. The
bank keeps the papers of his land as collateral, which will be return
to him on the repayment of loan along with the interest money.
Analyse the loan information given above considering the
following options:
(a) Informal sector loan
(b) Formal sector loan
(c) Self Help Group for the poor
(d) None of these

Answer 1

Answer:

(B) Formal Sector loan is the correct answer

Answer 2

Answer:

Fõrmãl sector L ò an

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