Talk to some people to find out the credit arrangements that exist in your area. Record your conversation. Note the differences in the terms of credit across people.

I talked to a few people living in my area and asked them what are the terms and conditions when they apply for loan and from where do they borrow. Different people gave different replies:

• Few said that they don’t borrow money as they can’t afford to repay the debts on time so they stay away from borrowing and lending.
• Some of them said that they borrow money from relatives and friends as there is low rate of interest required and sometimes no rate of interest as well.
• Few of them said that they borrow money from commercial banks and bank charges high rate of interest and also ask for some collateral and many more documentation formalities etc.
• Some people still borrow from local money lenders at very high rate for short terms. It is because they provide faster loan and with least documentation.