Saved Bookmarks
| 1. |
Why bank ask Collateral while giving loans |
|
Answer» Bank ask for collateral while giving credit to borrower because if the borrower fails to repay the loan the bank has right to use or sell the collateral given to him by the borrower so that they can get money which they gave him as a loan.if the borrower gives the loan in time than the bank gives collateral back to borrower. Because the banks uses this collateral as a guarantee untill the loan is repaid by the borrowers |
|