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Analyze the information given below, considering one of the following correct options:
Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :
- a)Terms of credit
- b)Interest on loan
- c)Debt-trap
- d)Mode of repayment
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
Analyze the information given below, considering one of the following...
A debt trap means that one owes a huge amount of money to various institutions or people, which feels neverending. Sometimes loans are taken to gain financial advantage, which is a wise decision. On the other hand, a debt trap is a situation we never want to be in.
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Most Upvoted Answer
Analyze the information given below, considering one of the following...
Debt-trap
The given information suggests that Mahesh, a small farmer, has taken a loan of ₹2 lakhs from a money lender to meet the expenses of cultivation. However, the annual interest rate on the loan is very high, which has led to Mahesh being unable to repay the loan and ultimately being caught in a debt-trap. He is forced to sell a part of his land to pay off the debt.
Explanation:
1. Introduction
- Mahesh, a small farmer, has taken a loan of ₹2 lakhs to meet cultivation expenses.
- The loan has resulted in a debt-trap due to high annual interest rates.
2. Terms of Credit
- The terms of credit refer to the conditions and agreements between the borrower (Mahesh) and the lender (money leader).
- In this case, it is not explicitly mentioned what the specific terms of credit are, but the information suggests that the loan has unfavorable terms for Mahesh.
- The high interest rate on the loan is a significant factor that has contributed to his inability to repay the debt.
3. Interest on Loan
- The interest on the loan is mentioned as being very high.
- This high interest rate has made it difficult for Mahesh to repay the loan, as the interest payments accumulate rapidly, increasing the burden of debt.
4. Debt-trap
- The situation described in the given information is referred to as a debt-trap.
- A debt-trap occurs when a borrower is unable to repay their loan due to various factors such as high interest rates, inadequate income, or unforeseen circumstances.
- In this case, Mahesh's inability to repay the loan has forced him to sell a part of his land, which can have long-term negative consequences for his livelihood as a farmer.
5. Mode of Repayment
- The mode of repayment is not explicitly mentioned in the given information.
- However, it can be inferred that Mahesh's inability to repay the loan has resulted in the need to sell a part of his land to generate funds for debt repayment.
- This suggests that the mode of repayment is through the sale of assets, which can have severe implications for Mahesh's agricultural productivity and financial stability in the long run.
Overall, the given information highlights the detrimental effects of high-interest loans and the potential consequences of falling into a debt-trap. It emphasizes the importance of fair and affordable credit terms for small farmers like Mahesh to avoid such situations and maintain their economic sustainability.
The given information suggests that Mahesh, a small farmer, has taken a loan of ₹2 lakhs from a money lender to meet the expenses of cultivation. However, the annual interest rate on the loan is very high, which has led to Mahesh being unable to repay the loan and ultimately being caught in a debt-trap. He is forced to sell a part of his land to pay off the debt.
Explanation:
1. Introduction
- Mahesh, a small farmer, has taken a loan of ₹2 lakhs to meet cultivation expenses.
- The loan has resulted in a debt-trap due to high annual interest rates.
2. Terms of Credit
- The terms of credit refer to the conditions and agreements between the borrower (Mahesh) and the lender (money leader).
- In this case, it is not explicitly mentioned what the specific terms of credit are, but the information suggests that the loan has unfavorable terms for Mahesh.
- The high interest rate on the loan is a significant factor that has contributed to his inability to repay the debt.
3. Interest on Loan
- The interest on the loan is mentioned as being very high.
- This high interest rate has made it difficult for Mahesh to repay the loan, as the interest payments accumulate rapidly, increasing the burden of debt.
4. Debt-trap
- The situation described in the given information is referred to as a debt-trap.
- A debt-trap occurs when a borrower is unable to repay their loan due to various factors such as high interest rates, inadequate income, or unforeseen circumstances.
- In this case, Mahesh's inability to repay the loan has forced him to sell a part of his land, which can have long-term negative consequences for his livelihood as a farmer.
5. Mode of Repayment
- The mode of repayment is not explicitly mentioned in the given information.
- However, it can be inferred that Mahesh's inability to repay the loan has resulted in the need to sell a part of his land to generate funds for debt repayment.
- This suggests that the mode of repayment is through the sale of assets, which can have severe implications for Mahesh's agricultural productivity and financial stability in the long run.
Overall, the given information highlights the detrimental effects of high-interest loans and the potential consequences of falling into a debt-trap. It emphasizes the importance of fair and affordable credit terms for small farmers like Mahesh to avoid such situations and maintain their economic sustainability.
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Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer?
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Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer? for Class 10 2024 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 10 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer?.
Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer? for Class 10 2024 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 10 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 10.
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Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Analyze the information given below, considering one of the following correct options:Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt. Analyse the loan information given above, considering one of the following correct option :a)Terms of creditb)Interest on loanc)Debt-trapd)Mode of repaymentCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Class 10 tests.
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