Question

In 150 words give speech on advantage and disadvantage of loan system

Answer 1

$\boxed{ESSAY\:ON\:LOANS\:}$

Loan means something which is borrowed from others in the form of money which is to be repay back them with interest. When someone is in need of money they prefer to take loans.

Bank loans and loans which are provided by money lenders are of two types .Most of the people who live in rural areas or uneducated prefer to take loans from money lenders.

People can get loans at low interest. And you will repaying back the loans through EMI which isn't a burden. If the borrower has all the appropriate documentation, then the bank will provide the loan quickly without delaying. There are different types of loans for different age groups like educational loan , house loan etc..If the borrower doesn't repay back the loan the bankers can't go and mishandle the person . They deal everything in a legal way.

Some people do not repay back the loans because of interests. They fall in debts. As bank loans are legal it will take time to fill the forms and to sanction the loan to the borrower. The borrower should provide with a collateral .If the borrower doesn't repay back the loan the collateral would be kept in auction.But bank loans are preferably rather than the loans provided by a money lender .