Question

Why shouldn't one avail loans from moneylenders?

• A. Moneylenders provide instant loans.
• B. Moneylenders charge high interest rates.
• C. Moneylenders maintain proper documents.
• D. Moneylenders waive off the interest.

Answer 1

The correct option is B Moneylenders charge high interest rates.

Since ancient times, people took loans for commercial purposes 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. Over time, banks and other financial institutions gained prominence as sources of credit. These institutions maintain proper documentation and provide loans to people at affordable interest rates.