Dinesh is a govt. employee, working as Site engineer with the Dept. of Roadways, and belongs to a rich household, whereas Nitin is a construction worker and comes from a poor rural household. Both are in need of a loan. Create a list of arguments explaining who between the two would be successful in securing a loan from a formal source.
Answers
Answer:
please solve form digest method
Explanation:
please solve form digest method
Dinesh will secure a loan from formal source
Explanation:
Dinesh is a govt. employee working as a Site engineer with the Dept. of Roadways, and belongs to a rich household.
So Dinesh has the advantage of a stable job and income. Being a rich person, he has collateral that he can provide the bank for his loan. He can also give proof of income from his salary slip. He will also have proof of identification and address. So it is easy for Dinesh to avail a formal loan from the bank.
Nitin is a construction worker and he is from the rural household. So he may not have proof of address in the city he works. Also as a construction worker, he will not have proof of income. As he is poor, he will not have collateral for the loan. So it will be difficult for him to secure a loan from the formal sector. He will have to approach the informal source for credit.