Q1. [2]
A House Loan
Megha has taken a loan of ₹ 5 lakhs from the bank to purchase a house. The annual interest rate on the loan is 12 per cent and the loan is to be repaid in 10 years in monthly instalments. Megha had to submit to the bank, documents showing her employment records and salary before the bank agreed to give her the loan. The bank retained as collateral the papers of the new house, which will be returned to Megha only when she repays the entire loan with interest.
Read the following source and answer the questions that follow :
- 5.1 From which source of credit Megha has taken loan ? [1]
- 5.2 Explain the terms of credit given in the source. [1]
Previously asked in CBSE board exam
2022 32/2/1 Q5
Generated by claude-sonnet-4-6 · 2026-06-15 06:56 · grounding stimulus
Model Answer
(5.1) Megha has taken a loan from a formal source of credit — specifically, a bank.
(5.2) The terms of credit are:
- Interest rate: 12% per annum
- Repayment period: 10 years in monthly instalments
- Collateral: Papers of the new house, retained by the bank until full repayment
- Documentation required: Employment records and salary proof
Source: Chapter 3 – Money and Credit, Formal Sector Credit
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Explanation
- 5.1 Examiners expect students to identify both the category (formal source) and the specific source (bank). Writing only "bank" may fetch the mark, but naming "formal source" adds precision.
- 5.2 "Terms of credit" is a defined concept covering interest rate, collateral, documentation, and repayment mode — all four are present in the passage. List them concisely; no elaboration needed for 1 mark. Avoid writing in paragraph form here as bullet points are clearer and faster to write.
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