The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.
Occupations
Reason for needing a Loan
Construction worker
-
Graduate student who is computer literate
-
A person employed in government service
-
Migrant labourer in Delhi
-
Household maid
-
Small trader
-
Autorickshaw driver
-
A worker whose factory has closed down
-
Next, classify the people into two groups based on whom you think might get a bank loan and those who might not. What is the criterion that you have used for classification?
The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.
|
Occupations |
Reason for needing a Loan |
|
Construction worker |
- |
|
Graduate student who is computer literate |
- |
|
A person employed in government service |
- |
|
Migrant labourer in Delhi |
- |
|
Household maid |
- |
|
Small trader |
- |
|
Autorickshaw driver |
- |
|
A worker whose factory has closed down |
- |
Next, classify the people into two groups based on whom you think might get a bank loan and those who might not. What is the criterion that you have used for classification?
Occupations
Reason for needing a Loan
Construction worker
To meet living expenses
Graduate student who is computer literate
To pursue higher education
A person employed in government service
For an offspring’s wedding
Migrant labourer in Delhi
To buy a house
Household maid
To meet living expenses
Small trader
To buy new machinery
Autorickshaw driver
To buy an autorickshaw
A worker whose factory has closed down
To meet living expenditure while still unemployed
Those who might get a bank loan
Those who might not get a bank loan
Graduate student
Construction worker
A person employed in government service
Migrant labourer in Delhi
Small trader
Household maid
Autorickshaw driver
A worker whose factory has closed down
The criterion I have used for the aforementioned classification is firstly, whether the borrower has the potential to repay the loan or not. Those with job security will certainly get a loan because they have the capability to give repayment instalments. The second basis of classification is whether the borrower has a collateral or not, on which to guarantee his/her loan. These two are the basic prerequisites for getting a loan from a bank.
|
Occupations |
Reason for needing a Loan |
|
Construction worker |
To meet living expenses |
|
Graduate student who is computer literate |
To pursue higher education |
|
A person employed in government service |
For an offspring’s wedding |
|
Migrant labourer in Delhi |
To buy a house |
|
Household maid |
To meet living expenses |
|
Small trader |
To buy new machinery |
|
Autorickshaw driver |
To buy an autorickshaw |
|
A worker whose factory has closed down |
To meet living expenditure while still unemployed |
|
Those who might get a bank loan |
Those who might not get a bank loan |
|
Graduate student |
Construction worker |
|
A person employed in government service |
Migrant labourer in Delhi |
|
Small trader |
Household maid |
|
Autorickshaw driver |
A worker whose factory has closed down |
The criterion I have used for the aforementioned classification is firstly, whether the borrower has the potential to repay the loan or not. Those with job security will certainly get a loan because they have the capability to give repayment instalments. The second basis of classification is whether the borrower has a collateral or not, on which to guarantee his/her loan. These two are the basic prerequisites for getting a loan from a bank.
