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Class 10 > Learn Class IX-X Tuition > Harish took credit from a bank but his friend Naresh...
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Harish took credit from a bank but his friend Naresh took credit from one of his relatives. After some years Harish repays that credit to bank easily but Naresh can not. Why?

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simple. Banking is an financial institution. People knows about their terms and conditions. If they fail to repay the loan , the bank will publish their name and photo in newspaper. So to avoid this harish repaid. But in the 2nd case Naresh got from his relative. He is not afraid of the consequences...
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simple. Banking is an financial institution. People knows about their terms and conditions. If they fail to repay the loan , the bank will publish their name and photo in newspaper. So to avoid this harish repaid. But in the 2nd case Naresh got from his relative. He is not afraid of the consequences as he got it from his relative. So he may think that he could tel some excuses. Thats it. read less
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revival

Due to lack of continuity in giving interest and backing amount as in this condition there is no set of rule and regulation in time bound manner which led to pile up of interest and money
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Naresh would be in deep financial crisis that could be one of the reason for not paying the loan.
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Maths teacher

EMI is fixed for repayment in banks which is managed by most of the people. But for relatives no such criteria us there . Also legal binding in case of bank is big reason for successful repayment.
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Tutor

Loan depends on three factors principle,interest%(compoundbor Simple),Time period..Any of the conditions mentioned above may change the repayment of loan period.
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