Sanjay is a government employee and belongs to a rich household, whereas Raju is a construction worker and comes from a poor rural household.Both are in need and wish to take loan.Create a list of arguments explaining who between the two would successfully be able to arrange money from a formal source.Why?

Dear student,

Firstly, Sanjay the government employee will be able to arrange money because the banks ask about the collateral or security for the loan's taken ,the government employ has a security of the job then can deduct from his salary if he is unable to return the loan where as Raju, the construction worker will face many difficulties because he has no collateral or security.
Secondly, banks asks for proofs if the loan taker can afford a loan or not. Since, Sanjay is a government employee he has his payslips which can help him prove this. But, Raju does not have his payslips and hence he will not be able to prove if he can take that much loan or not.

Regards,

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