Question

discuss the loan activities in a bank?

Answer 1

# Banks keep only a small portion of deposits with themselves, for eg. in India 15 % of deposits are kept as cash. 

# it is a provision to pay the depositors if they come to withdraw money.

# banks use major portion of deposits to extend loan. loan is required for different economic activities and plays different role in different situations 

#  the borrowers are tend to pay an interest on the loan given. the difference between what is paid to depositors is the main source of income of banks

# banks give loan on basis of some terms. these terms are known as terms of credit.

HOPE IT HELPS!!!!!!!!!!

Answer 2

There are various kinds of loan activities which take place in a bank, initially, when a person applies for a loan, his background and financial status are checked to ensure that the money will be revert back to the bank.

The CIBIL score of the person is also checked and then the calculated amount of money is sanctioned in the form of a loan.

There are different kinds of loan such as,

• Home loan
• Car loan
• Business loan
• Property loan