Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> How are banks a better alternative to moneylenders?

• A. Banks charge a high rate of interest.
• B. Banks provide loans at reasonable interest rates.
• C. Banks often ill-treat the people who are unable to pay loans.
• D. Banks provide instant loans without proper documentation.

Answer 1

The correct option is B Banks provide loans at reasonable interest rates.

Since ancient times, people took loans for commercial purposes. They took loans from moneylenders. Moneylenders are people with money who charge a very high interest on loans. They often ill-treat the people who are unable to pay the loans. However, the banks prevent these bad situations by providing loans at reasonable rates of interest and with proper documentation.