How will you justify that interest on loans is a main source of income of the banks?
Answers
Answer:
Well,Many expensive things such as Car and Even home are bought through Loans because cannot afford it in one single payment. So banks provide Loans for these from which they Get benefitted.
Explanation:
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Answer:
HERE IS YOUR ANSWER DEAR...
Explanation:
Banks mediate between those who have surplus funds and those who are in need of these funds. It means that a bank mediates between borrowers and depositors. Banks charges very high interest rate on loans than what they offer to the depositors. The difference between what is charged from borrowers and what is paid to depositors is their main source of income. These days’ banks started so many schemes just to attract the borrowers. Banks offer loans at attractive interest rate. The main motive behind all these steps of banks is to earn huge profits.