Question

Why do street vendors take loans from moneylenders and not from banks?

• A. Moneylenders readily give loans.
• B. Banks are not inclined to give loans without guarantee.
• C. Banks take a lot of time to process loans.
• D. Banks easily give loans to street vendors and large traders.

Answer 1

Answer: (A), (B), (C)

The correct options are
A Moneylenders readily give loans.
B Banks are not inclined to give loans without guarantee.
C Banks take a lot of time to process loans.

Street vendors take loans from moneylenders and not from banks because moneylenders readily lend money in order to gain huge interests. However, banks are not inclined to give loans to people who do not have the means to pay the loan back. Also, banks take a lot of time to process loans.