explain the general principles which should guide a bank in making advances to a customer ?
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Principles of Good Lending Every Banker Follows - Loans
Safety. "Safety first" is the most important principle of good lending. ...
Liquidity. It is not enough that the money will come back; it is also necessary that it must come back on demand or in accordance with agreed terms of repayment. ...
Purpose. ...
Profitability. ...
Security. ...
Spread. ...
National Interest, Suitability, etc. ...
Ideal Advance.
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