Primary security is the security someone offered to a bank to cover any risk the bank faces by granting a credit facility to a borrower. However, sometimes a single security may not be sufficient to cover the risk.
Example: X bank grants a credit facility of $100 to a borrower called 'B,' and the borrower offers a bare land of $60 to the bank as the security. As you can see, the is bank facing a risk of $40.
To cover up the balance of the credit risk, the borrower needs to offer another security. This new security is known as a collateral security.
It is a kind of loan where there is no primary or secondary security or collateral taken by the bank.
The Primary Mortgage is that relationship that exists between a lender and a potential borrower. on the other hand, the Secondary Mortgage Market is the relationship that exists after the loan is closed and the lender markets the collateral of that loan for sale to an investor.
The major difference is that the Primary Account holder is responsible for all the amounts due on both the Primary Card and the Secondary Card.
It is the limit provided by the Banks/ Financial Institutions to a party without any depositing of primary security. It is given on the basis of market value of the property/Collateral and its' last year's sale value
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It is a kind of loan where there is no primary or secondary security or collateral taken by the bank.
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Collateral is: 1. Secondary, subordinate, or supplementary item accompanying a primary item. 2. Specific asset (such as land or building) pledged as a secondary (and subordinate) security by a borrower or guarantor. The principal security is usually the borrower's personal guaranty, or the cash flow of a business. Except for highly creditworthy customers (who can get loans against only their signatures) lenders always demand a collateral if the primary security is not considered to be reliable or sufficient enough to recover the loan in case of a default. See link below.
difference between primary auxiliary verbs and modal verbs
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Identify the difference between primary sector and secondary sector
Roots and stem get modified for storage or performing any specific function such as climbing or overcoming hostile environmental conditions. The basic difference between a root and stem is that in case of root, the primary vascular bundles are radial whereas in stems these are conjoint and collateral.
The Primary Mortgage is that relationship that exists between a lender and a potential borrower. on the other hand, the Secondary Mortgage Market is the relationship that exists after the loan is closed and the lender markets the collateral of that loan for sale to an investor.
Primary needs are essential for survival, such as food, water, shelter, and clothing, while secondary needs are not necessary for survival but contribute to quality of life, such as education, entertainment, and travel. Primary needs are fundamental to human existence, whereas secondary needs are more related to personal preferences and desires.
what are the diffrence between primary reserve and secondary reserve?
What is the difference between a primary source and an artifact? a. Primary sources are studied by archaeologists; artifacts are studied by historians. ... Primary sources are written sources; artifacts are objects.
The difference between primary data and secondary data is that primary data is the information from the original research.