Explain any three loan activities of banks in India.
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Loan activities of Bank
Banks use the majority portion of the deposits to extend loans. ... Banks charge a higher interest rate on loans other than what they offer on deposits. The difference between the amount that is charged from borrowers and what is paid to depositors is their main source of income for banks.
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Loan activities of banks in India.
i) Banks use the major portion of the deposits to extend loans .
2) Banks make use of the deposits to meet the loan requirements of the people.
3) Banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers).
4) Banks charge a higher intersect rate on loans than what it offers on deposits.
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