Business Studies, asked by chhedaaashi28, 6 hours ago

Precautions to be taken by the bank while advancing loan against shares

Answers

Answered by naikarpita77
1

Answer:

Precautions to be taken by the bank while advancing loan against shares

Answer:- Creation of charge by Pledge and Hypothecation: A banker may create a charge over the goods either by pledge or hypothecation. ... Insurance up to the full market value: Goods should be insured against all known risks up to their full market value. The relative insurance policies should be held by the bank

I hope this helps you... frnda...

Answered by sy2681770
0

Answer:

In granting advances, certain precautions are necessary.

The integrity of the borrower.

Purpose of the loan.

Nature of the commodity.

Knowledge of different markets.

Proper care in valuation.

Ascertain the title of the owner.

Proper storage.

Rented godown.

Explanation:

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