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Why Should We Repay The Loan? |
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Answer» The banks use depositors' MONEY for lending. If the loan is not repaid, it would affect the bank's CAPACITY to repay the depositors' money in time. This would also affect the banks capacity to lend to borrowers. In case the loans are not repaid on time bank could take POSSESSION of the security offered as guarantee for the loan and can initiate legal PROCEEDINGS for recovering the loan AMOUNT along with the interest. The banks use depositors' money for lending. If the loan is not repaid, it would affect the bank's capacity to repay the depositors' money in time. This would also affect the banks capacity to lend to borrowers. In case the loans are not repaid on time bank could take possession of the security offered as guarantee for the loan and can initiate legal proceedings for recovering the loan amount along with the interest. |
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