10TH CBSE SST Illustrate with examples the role of ‘loan’ in ‘business’.

 

Ans:
Role of Loan:
1. Loan is a crucial element in economic life and plays a vital and positive role.
2. It helps to increase earnings.
3. It makes a person economically better off than before.
4. It helps the poor and needy at the time of crisis.
5. It helps the person to meet the ongoing expenses of production and complete production on time.
6. In another situation, because of the crop failure, loan pushes the person into a debt trap.
7. Examples of Salim and Laksmi could be given