0
Why banks usually take security for a loan when a good assessment will ensure that the loan will be repaid?
An assessment, no matter how good, can not guarantee the future. Negative changes in income may cause a change in the ability of the borrower to fulfill repayment obligation. A bank or lending institution willing to give unsecured loans on a regular bases would be putting their assets, manly customer deposits, at great risk which on their part would be a horrible business decision.
What else can I help you with?
does a grant have to be repaid?
does a grant have to be repaid
What is a short term bank loan?
A loan you take out which is usually repaid within 1-4 years.
What is meant by the term security when obtaining financing?
Security indicates something of value that is pledged against the loan. Pawn shops take valuables and loan money against them. The item is held as security or collateral for the loan. If the loan is not repaid, the pawn shop will sell the item to get their money back. When buying a car or a house, the vehicle or property usually stands as the security for the loan. If the loan is not paid, the loan company will take the vehicle or foreclose on the property so that they can sell it and get their money back.
What is the difference between a lien and a loan?
A lien is a legal claim on an asset as security for a debt, while a loan is money borrowed from a lender that must be repaid with interest.
What is the difference between margin and collateral in terms of securities trading?
In securities trading, margin is the amount of money borrowed from a broker to buy securities, while collateral is the assets or funds used to secure the loan. Margin involves borrowing money to invest, while collateral is the security provided to ensure the loan is repaid.
When are reserves borrowed at the Federal funds rate usually repaid?
The Next Day.
does a grant have to be repaid?
does a grant have to be repaid
What is a short term bank loan?
A loan you take out which is usually repaid within 1-4 years.
What is meant by the term security when obtaining financing?
Security indicates something of value that is pledged against the loan. Pawn shops take valuables and loan money against them. The item is held as security or collateral for the loan. If the loan is not repaid, the pawn shop will sell the item to get their money back. When buying a car or a house, the vehicle or property usually stands as the security for the loan. If the loan is not paid, the loan company will take the vehicle or foreclose on the property so that they can sell it and get their money back.
What is the difference between a lien and a loan?
A lien is a legal claim on an asset as security for a debt, while a loan is money borrowed from a lender that must be repaid with interest.
Is repaid an adjective?
"Repaid" is a verb: "Bob did me a favor, so I repaid him by baking him a cake." "Unpaid" is an adjective: "I have several unpaid parking tickets."
What is government note that is repaid with interest?
what is it called when goverment note that is repaid with interest?
What is the difference between margin and collateral in terms of securities trading?
In securities trading, margin is the amount of money borrowed from a broker to buy securities, while collateral is the assets or funds used to secure the loan. Margin involves borrowing money to invest, while collateral is the security provided to ensure the loan is repaid.
How do you use repaid in a sentence?
I don't want my favor repaid; I want you to pass it along.
When is a bonds par value repaid?
A bond is a type of a debt security, the approved issuer owes the holders a debt. The repayment period is often an agreement between the issuer and the holder.
When is a bonds value generally repaid?
A bond is a type of a debt security, the approved issuer owes the holders a debt. The repayment period is often an agreement between the issuer and the holder.
Is a lien the same as a loan?
No, a lien is not the same as a loan. A lien is a legal claim on an asset as security for a debt, while a loan is money borrowed from a lender that must be repaid with interest.
