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What are the questions banks ask prior to lending a person money?
Wiki User
∙ 8y ago
The main one the ask is - can you afford the repayments ! Additionally, they would likely ask if you're employed (and for how long) - what your salary is - and what your regular outgoings are.
Wiki User
∙ 8y ago
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What is inter bank lending?
Banks lending money to other banks.
What do banks do with money not held in the federeal reserve?
They loan it out to others. Banks make more money through lending money than through storing it.
How do banks earn revenue by lending money?
All banks earn a revenue by lending money. Banks make profit and generate revenue by two ways:By charging you a fee for the services they provide youBy lending the money you have deposited into your account, to other loan customers and getting an interest on the same.Interest income is the highest revenue and profit generator for any bank.
How do banks earn a profit from lending money to their customers?
by charging interest rate
How does charging interest encourage banks to make loans?
Interest is the money banks get in exchange for lending money. The more "safe" loans they make, the more money they make. This helps keep bank investors happy. A loan at 0% offers the bank zero incentive for lending money.
What is inter bank lending?
Banks lending money to other banks.
What were the most important purpose of early banks?
The lending of money.
Is money lending act and provision are effective on private banking sector?
is privet banks comes in money lending act criteria
What do banks do with money not held in the federeal reserve?
They loan it out to others. Banks make more money through lending money than through storing it.
How do banks earn revenue by lending money?
All banks earn a revenue by lending money. Banks make profit and generate revenue by two ways:By charging you a fee for the services they provide youBy lending the money you have deposited into your account, to other loan customers and getting an interest on the same.Interest income is the highest revenue and profit generator for any bank.
How do banks earn a profit from lending money to their customers?
by charging interest rate
Is p2p lending?
Peer-to-peer lending (also known as person-to-person lending, peer-to-peer investing, and social lending; abbreviated frequently as P2P is the practice of lending money to previously unrelated individuals or "peers" without the intermediation of traditional financial institutions (banks). It takes place on online lending platforms that are provided by peer-to-peer lending companies on their websites and is facilitated by credit checking tools of varying complexity.
How does charging interest encourage banks to make loans?
Interest is the money banks get in exchange for lending money. The more "safe" loans they make, the more money they make. This helps keep bank investors happy. A loan at 0% offers the bank zero incentive for lending money.
What is consortium lending?
Consortium Lending is that type of lending in which two or more banks come together to finance the big projects requiring huge amount of money. Consortium lending is usually done by banks to distribute the risks among the group of banks ,it is also used by smaller banks to use as an opportunity to be a part of the big project financing and to gain expertise in this area. Big banks by resorting to consortium lending not only saves their prospective customers but also builds good relations with other banks.
When President Jackson did not renew the charter for the Bank of the US the responsibility of money lending fell to?
When President Jackson did not renew the charter for the Bank of the US the government stated putting money in state banks. Money lending fell on these banks and four anti-bank resolutions were approved.
When banks borrow money from each other?
Banks usually borrow money from one another when they are running short of cash. They charge a smaller interest (when compared to what interest gets charged to a normal loan customer) when they lend money to other banks. This lending interest rate is called Inter-Bank Lending Rate. Banks even go to the central bank of their country to borrow money if they need it.
What do banks do with the money not held in reserve?
Loan it out to people, because they'll make more money by lending than by saving.
