Question

loans available to eve
How does a loan that can increase our income also trap us in a web of debt? Explain with
examples from around you.​

Answer 1

Answer:

It is the situation when borrower is unable to pay previous loan and he takes new loan. This is called Debt Trap. Ex= Ram has taken loan to pay fee of his son and he is unable to pay that loan and takes 2nd loan to pay fee. In situation of debt trap, recovery from loan is very painful

Explanation:

Answer 2

Explanation:

we take loan with some purpose sometimes we get success for the purpose we have taken some time we invest this loan amount in some business if the business is at profit then we can easily repay the amount of loan but if the business is at loss we cannot repay the amount in such case we are caught in the net of lone