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.

Question

Philoid · Accepted Answer

Correct fill the given table is as follows:

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 his/her daughter’s wedding
Migrant labourer in Delhi	To buy a house
Household maid	To meet living expenses
Small trader	To buy new machinery
Auto rickshaw driver	To buy a new auto rickshaw
A worker whose factory has closed down	To meet living expenditure while still unemployed

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?

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
Auto-rickshaw driver	A worker whose factory has closed down

The criterion which is used to categorize the above mentioned things, that first to check whether the borrower has the potential to repay the loan or not. And with job security they will certainly get a loan from bank because they have the capability of paying the debts in installments. The second basis is that whether the borrower has collateral or not and on what guarantee he will be lent. These two are the basic prerequisites for getting a loan from a bank.