Answer:
The first one
Explanation:
As they sometimes cannot repay the loans hence losing money.
The Economic Impact of defaulting on bank loans is that the Economy suffers because banks have less money to loan to others.
Defaulting on bank loans means it is the failure of the borrower to pay the interest on the loan.
So in such cases if the people do not pay the Interest on the loans one final day the bank starts to run out of money and provide it to the people or provide more loans to the people.
For more information on Bank loans :
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