Raju: So at the end of the year you have to repay Rs 1050. Now, if you don't repay your due amount to the bank, it becomes Rs 1050 and the 5% interest will now be charged on Rs 1050. So you will have to pay more interest next year and so on.
Gopi Chacha: Also, unless you repay, the bank will not be able to provide loan to another needy person. Repaying loans is a responsibility you owe not only to the bank but also to the society.

Gopi Chacha: We should remember that when we repay, the money goes as loan to another person and he too prospers. This way we all can contribute to each others' prosperity!

Raju: In fact, some banks have the facility of a credit counsellor whom you can meet before taking a loan.
Gopal: Credit counsellor? Who's that?