Question

use of new machine in place of old Machine isयूज़ ऑफ न्यू मशीन इन प्लेस ऑफ ओल्ड मशीन ​

Answer 1

Explanation:

1. Collateral - It is an asset that the borrower owns (exampleland, building, livestock, vehicles etc.) and uses as a guarantee to a lender until the loan is repaid. If the borrower fails to repay the loan, the lender can obtain his payment by selling that particular asset.

2. Documentation - A formal source of credit functions according to certain rules and regulations. In extending loans. they demand a set of formal documents of the borrower for identity and security purposes. The interest rate charged on loans along with the mode of repayment is also specified in formal documents.

3. Financial Capability - The formal source of credit needs to ensure the financial independence of the borrower. The poor often fail to get loans from these sources because of the lack of various terms of credit.