Question

How a bank earns from interest on loans??​

Answer 1

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It all ties back to the fundamental way banks make money: Banks use depositors' money to make loans. The amount of interest the banks collect on the loans is greater than the amount of interest they pay to customers with savings accounts—and the difference is the banks' profit

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Answer 2

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Bank puts interest on loans while also provide interest to depositors.

The earning on bank is interest on loans - Interest on deposits.