While speaking to a banker you realise that there are a variety of reasons for which people approach banks for loan. In urban areas, people mostly have a high standard of living. So, they concentrate mostly on welfare activities.

Select the reasons for which urban people usually seek loan.

For higher education

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For farming

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For buying cars

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For daily needs

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Solution

The correct option is C For buying cars
The different types of loans raised by the urban people are: education loan, home loan, car loan, gold loan, etc. However, in the rural areas, loans are taken for surival, such as loans to buy farming equipment and other related items. They also take out loans to fulfil daily needs like food and shelter. Most loans in the rural areas are taken informally, while the urban population relies on formal sources.

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Similar questions

Q. A major reason for poor people living in substandard conditions in urban areas is .

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?

Q. Whenever some people wish to enter into the business world it is a must for them to approach a bank. What services do banks provide them in this regard?
A. Banks act as payment agents by operating current accounts, paying cheques and receiving payments for them.
B. Maintaining account books for them for their day-to- day activities so that they are not required to appoint account/finance personnel on a regular basis.
C. Lending money by way of overdraft, instalment loan, credit or advance for business activities

State, with reasons, whether the following statements are true or false.

i) The concept of relative poverty is used to measure total number of people living below the poverty line.

ii) Extent of poverty is more in rural areas as compared to urban areas.

iii) Population explosion is one of the basic reasons for widespread poverty.

Poor people have to depend on loans for

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While speaking to a banker you realise that there are a variety of reasons for which people approach banks for loan. In urban areas, people mostly have a high standard of living. So, they concentrate mostly on welfare activities. Select the reasons for which urban people usually seek loan.

While speaking to a banker you realise that there are a variety of reasons for which people approach banks for loan. In urban areas, people mostly have a high standard of living. So, they concentrate mostly on welfare activities.

Select the reasons for which urban people usually seek loan.