Credit sometimes pushes the borrower into a situation
Money & Credit (C10)
"Credit sometimes pushes the borrower into a situation from which recovery is very painful." Support the statement with examples.
Credit push the borrowers in a situation from which recovery is painful:
- It happens when the borrower is not able to repay the loan.
- Many a times caught into the situation of debt-trap.
- To repay her loan person has to sell a portion of her/his land.
- The situation of the person gets much worse off than before.