CameraIcon

SearchIcon

MyQuestionIcon

326

You visited us 326 times! Enjoying our articles? Unlock Full Access!

Introduction to Debentures

In case of de...

Question

In case of default in repayment of loan, the bank auction the property for sale and recover their money. This procedure is called .

A

back-closure

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

foreclosure

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

non-closure

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

part-closure

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B foreclosure
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Suggest Corrections

thumbs-up

0

Similar questions

In case of default, the bank auction the property for sale and recover their money. This procedure is called ___________.

Q. Statement: The Reserve Bank of India has directed the banks to refuse fresh loans to major defaulters.
Assumptions:
I. The banks may still give loans to the defaulters.
II. The defaulters may repay the earlier loan to get fresh loan.
III. The banks may recover the bad loans through such harsh measures.

The bank gives you money in exchange for a mortgage on your house. This type of loan is called _____________.

Q. The bank gives you money in exchange for a mortgage on your house. This type of loan is called a/an .

Q. As published in the newspapers, the RBI has issued certain guidelines to be followed by the Recovery Agents appointed by the banks. In addition to this, the Indian Bank Association (IBA) has to formulate a special training course for them. Why do RBI and IBA have to come into picture for such an issue which is the responsibility of the banks?
A. RBI and Govt were getting many complaints from the public about the misbehaviour of Recovery Agents.
B. Govt of India is paying much emphasis on providing banking services to the poor section of the society. News about ill-treatment by agents or suicides due to inability to pay back loans create a negative picture. RBI does not want this to happen.
C. Despite banks efforts to recover loans many people still do not wish to repay their loans, intentionally. Recovery agents will help banks to get their money back by all possible means.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

US housing market crisis

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Introduction to Debentures

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon