If a loan is taken for livelihood but there is no income plan then what is the risk?
Answer and explanation
Correct answer: The debt burden may increase
Without an income plan, regular money may not be available to pay loan instalments and interest. This can increase overdue payments and the debt burden. A loan is not waived automatically, and profit is never guaranteed. Exam tip: Link borrowing with an income source, expected earnings, and a repayment plan.
Frequently asked questions
What is the correct answer to this question?
The debt burden may increase
Why is this the correct answer?
Without an income plan, regular money may not be available to pay loan instalments and interest. This can increase overdue payments and the debt burden. A loan is not waived automatically, and profit is never guaranteed. Exam tip: Link borrowing with an income source, expected earnings, and a repayment plan.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Work, careers and livelihood.
