Question

Amrita is a government employee and belongs to a rich urban household whereas Rani

works as a helper on a construction site and comes from a poor rural household. Both

have a crisis at home and wish to take loan. Create a list of arguments explaining who

between the two would successfully be able to get the loan from a formal source. Why?

Answer 1

Amrita would be able to get a loan from the formal sector easily because her income is regular and fixed therefore she can also pay back the money of loan with the interest to the bank.
Rani has a less chance of getting a loan from the formal sector because her job is not a safe and she will not get a regular salary it would be irregular and not fixed therefore she can't pay back the money of loan with the interest.