Question

State two advantages and two limitations of bank loans.

Answer 1

Advantages:

1. Access to Funds: Provides necessary funds for personal or business purposes.
2. Lower Interest Rates: Loans typically have lower interest rates compared to other financing options.

Limitations:

1. Repayment Burden: Fixed monthly repayments can strain finances.
2. Collateral Requirement: Most loans require collateral, which might not be available to everyone.