Question

Rate of interest charged by moneylenders as compared to that charged by Bank is:

(a) Lower (b) Same

(c) Slightly higher (d) Much higher​

Answer 1

Rate of interest charged by moneylenders as compared to that charged by Bank is: (d) Much higher

Answer 2

Option D is correct.

• Rate of interest charged by moneylenders as compared to that charged by Bank is much higher.
• Their rate of interest is so higher due to many reasons, one of hem being the non-requirement of paper-work.
• Moneylenders do not ask the customers to submit documents such as ID card, bank statements, etc.
• Moreover banks do not provide loans to customer that do not have a good financial history, thus moneylenders charge more interest for the same amount of loan.