loan from the bank always have to raise people's earning capacity justify the statement with suitable example
Answers
The statement mentioned in the question is completely justified because -
• The return amount of a loan from the bank is always greater due to the interest rates.
• That's why to re-pay the increased amount of money to the bank we have to earn more than before.
Because,in majority of the cases the
lower earning capacity is the reason behind taking a loan.
• We have to increase our earning capabilities in order to replenish the main amount and included taxes.
For example,
If someone earns rs.10000 per month and takes a loan of rs. 100000 for a year with a total interest amount of rs. 5000.
So,to re-pay the total amount of rs.105000 he have to increase his yearly income because previously his yearly income was = rs.120000, and if he want to repay the loan with this money he will be left with only 15000 rs., by which he cannot run his monthly or yearly expenses.
He have to earn more in order to repay and arrange the daily expenses at the same time.
Pls refer to the attachment for the answer...