When anyone opens a current account at a bank, he is lending the bank money, repayment of which he may demand at any time either in cash or by drawing a cheque in favour of another person.
When aid is offered with heavy conditions attached, like loan repayment or food for resources, it often widens the gap between rich and poor and sustains the old world order.
The relationship is based on trust and good faith. Repayment rates are very high for two main reasons. Firstly, borrowers know that they cannot borrow again if they don't repay the first loan.
While much of Pakistan's twenty three billion dollar loan repayments due in the fiscal year 2022-23 have been rolled over, the government must pay three billion dollars by the end of the fiscal year in June to avoid default.
When those students apply for student loans, banks and cooperative universities inevitably have informed any detail relevant to the application, the repayments and consequences of failure to repay loans.