Why do banks or lenders demand collateral against loans?
Answer : What is Collateral : Collateral is an asset or property that a borrower offers to a lender to secure a loan. If the borrower fails to repay the…
Distinguish Between Primary and Secondary Sectors ? ( CLASS 10)
Other examples of the Secondary Sector: Food processing – turning raw ingredients like wheat into bread or milk into cheese Textile industry – converting cotton into fabrics and then into…
Harsh Bad Effects of Informal Sources of Credit on Borrowers?
ANSWER : Informal sources of credit, like moneylenders or unregistered lenders, can have harmful effects on borrowers: No Legal Protection: Borrowers have no legal recourse in case of disputes, which…