Question

Meghana has taken a loan of 6 lakhs from the bank to purchase a house. The annual

interest rate on the loan is 14% and the loan is to be repaid in 12 years in monthly
instalments. Meghana had to submit to the bank documents showing her employment
records and salary before the bank agreed to give the loan.
Analyse the loan information given above considering one of the following
correct option
A
Interest on loan
B.
Informal source of loan
C.
Formal source of loan
D.
None of the above​




please help

Answer 1

C.

Formal source of loan

Step-by-step explanation:

From the loan Meghana took from the bank, it showed that, she obtained it from an official source which happens to be a loan. The bank do not run a charity organisation but a full fledged business with other customer's money.

In other to meet up with the expenses and still pay interest to people who deposited money in their bank, there is need to charge interest to those who took out money from them as loan.