The net total amount (Principal + Interest) payable to Kabir at the end of the 2nd year is:

Let's find the components of the second year's payment:The annual principal installment is Rs. 25,000.At the start of the 2nd year, one installment of Rs. 25,000 has already been paid, leaving an outstanding balance of:
$$\text{Outstanding Balance}=\text{Rs. }1,00,000-\text{Rs. }25,000=\text{Rs. }75,000$$
Calculate the interest due on this balance at the end of Year 2:
$$\text{Interest for Year 2}=\text{Rs. }75,000\times 12\%=\text{Rs. }9,000$$
Total cash paid out at the end of Year 2:
$$\text{Total Installment Paid}=\text{Principal}+\text{Interest}=\text{Rs. }25,000+\text{Rs. }9,000=\text{Rs. }34,000$$