Explain any three loan activities of banks in India.
Banks act as a mediator between those who have surplus funds (the depositors) and those who need funds (the borrowers) by lending money to people who are in need. People can open accounts in banks and banks make use of that money to fulfill the loan requirements of needy people. A higher rate of interest is charged to the borrower and that profit is given to the depositor as interest for offering deposits. This is the actual loan process.
Loan activities of Bank