why goodwill increases when it raise a loan from financial institution
Answers
Answer:
Business goodwill is an intangible asset owned by and associated with the operation of a company. The goodwill of a company increases its value, as qualities such as the company's customer base, its brands, products, location, workforce, and reputation demonstrate the company's proven track record of generating income.
Answer:
An increasing number of consumers are now taking personal loans for their purchases, especially the big-ticket ones. They are also converting their purchases into equated monthly instalments (EMIs).
Personal loans help the households meet any shortfall they experience in buying a house or a car, in children's higher education, or even in cases of medical contingencies, among other things.
Here's a low down on personal loans to understand them better.
What is a personal loan?
Simply put, it is an unsecured loan taken by individuals from a bank or a non-banking financial company (NBFC) to meet their personal needs. It is provided on the basis of key criteria such as income level, credit and employment history, repayment capacity, etc.
Unlike a home or a car loan, a personal loan is not secured against any asset. As it is unsecured and the borrower does not put up collateral like gold or property to avail it, the lender, in case of a default, cannot auction anything you own. The interest rates on personal loans are higher than those on home, car or gold loans because of the greater perceived risk when sanctioning them.