1. Only Argument I is Strong
  2. Both are strong
  3. Neither I nor II is strong
  4. Only argument II is strong

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Option 1 : Only Argument I is Strong

The statement asks if banks should give home loans at affordable rates.

  • Argument I agrees with it and suggests that affordable rates will make it easy for people to give monthly EMIs. Thus, it makes a strong point.
  • Even at affordable rates, banks won't lose money by giving loans. Because any loan when repaid by the customer is profitable to the bank because it is returned with interest. So, argument II is not strong.

Hence the correct answer is option 1.

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