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The Debt Trap

The security ...

Question

The security that banks take against offering loans to borrowers is called .

A

Collateral

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B

Bond

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C

Interest

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D

Margin

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Solution

The correct option is A Collateral
Collateral refers to security that banks ask borrowers to pledge against their loans. In the case of default, the banks can keep take possession of the given collateral.

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Q. Name the credit control method which refers to difference between the amount of loan and market value of the security offered by the borrower against the loan.

Q. Companies may issue the debentures as security against loans taken from banks/financial institutions as _______.

Q. refers to physical assets that act as a security for the loans customers avail from banks.

Q. is the bank that provides and promotes rural development by offering loans.

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

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