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Importance of Security For Bank Loans

 
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lutherbeau



Joined: 09 Nov 2012
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PostPosted: Fri Nov 09, 2012 4:56 am    Post subject: Importance of Security For Bank Loans Reply with quote
Having extended the loan to the borrower, Bank would naturally like to ensure that the loan is repaid with the interest thereon. That is, Bank would want to secure the loan. This is done by way of creating a charge against the asset financed by the Bank. The type of charge created depends on the nature of loan, and the security.
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