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Explain, why the banks do not lend credit to certain borrowers. - Social Science

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प्रश्न

Explain, why the banks do not lend credit to certain borrowers.

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उत्तर

  1. Banks do not lend to borrowers who do not have collateral, as it serves as a guarantee and can be sold if the borrower fails to repay.
  2. Banks typically do not lend to borrowers without enough proof, such as salary or collateral.
  3. Banks do not extend credit to persons who have not paid previous debts or are already defaulters.
  4. Banks typically avoid lending to borrowers who intend to engage in risky firms.
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2021-2022 (March) Delhi Set 1
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