MCQ:- Banks do not give loans: (a) to small farmers (c) to industries (b) to marginal farmers. (d) Without proper documents and collateral
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(d) without proper documents and collateral.
Banks require it to know financial condition of borrower and make sure he/ she can pay loan on time .
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The correct option is (d): Without proper documents and collateral
- Small farmers, marginal farmers, and the industrial sector all receive loans from banks.
- It does, however, have a requirement that all essential documents be supplied to the bank ahead of time for verification and security purposes.
- Bank does not issue loans to anyone who does not have an authentic identification or can establish that they have a legitimate source of income.
- Because the loan must be repaid within the specified time, the collateral is also significant.
- If a person fails to repay a loan, he or she may be held liable to the bank.
- As a result, banks will not offer loans without sufficient documentation and collateral.
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