Raju: For purchasing a tractor, seeds, fertilizers and farming equipment. Banks also give loans for constructing a house or a shop or starting a business, for buying vehicles for taxi service, rickshaws, for education, etc. Banks also give loan to purchase a bullock.
Gopal: For all these purposes, even our moneylender Dhaniram will give a loan. Then why should we go to the bank?

Raju: Okay. I will tell you the reasons. Suppose you take a loan of Rs1000 from Dhaniram. He asks you to repay Rs 260 as interest on the loan.
Raju: So you have to pay him Rs 105 every month. This will take you one year to repay the entire amount of Rs 1260. Do you know how much interest he has charged you?