Banks lend no collateral loans to individuals when organised in SHGs because all group members are responsible for the repayment of loans.

True

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False

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Solution

The correct option is A True

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Similar questions

Q. Why do banks lend to the poor women organised in self-help groups (SHGs) even when they cannot provide any collateral against the loan?

Q. Statement: Shalini made an application to the bank for a loan of

R s . 1, 80, 000

by mortgaging her house to the bank and promised to repay it within five years.
Assumptions:
I. The bank has a practice of granting loans for

R s . 1, 00, 000

and above.
II. The bank accepts house as a collateral security against such loans.

Q. A introduces B to C as a partner in his business. B, in fact, was not a partner but he did not deny the statement. C advanced a loan to A. A could not repay the loan. C can hold B responsible for the repayment of loan because _________________.

A borrower comes into the bank and pays off 100 Rupees of his loan. This was a cash payment by the borrower to the bank. What will the bank do because of this loan repayment?

Q. The Reserve Bank of India ensures that banks do not lend out all their deposits as loans.

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