Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.
Manav will decide whether to borrow from the bank or the money lender on the basis of the following terms of credit:
→ Rate of interest
→ Requirements availability of collateral and documentation required by banker.
→ Mode of repayment.
Depending on these factors and of course, easier terms of repayment, Manav has to decide whether he has to borrow from the bank or the moneylender.
