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Correct Option is demand was decreasing as people were unsure about their repayment capability

Solution:The most suitable answer is option (d). To validate this, refer last paragraph “If I am not sure of a regular salary in the immediate (or even distant) future, which affects my capacity to pay EMIs on these loans, however low they may be, I won’t take the risk of taking a loan. Moreover, even if there were takers for these loans, if the banks are burdened with bad loans as a result of past decisions, they may be wary of releasing credit.”

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