Banks ask for personal/collateral security for educational loan. Affluent families avail bank loan because the rate of interest is low. They produce whatever form of security the bank demands. Can an applicant, who cannot satisfy this demand too get a nationalised bank's consideration for loan?
2007-10-23 22:43:53 · 2 answers · asked by DEEPU 2 in Education & Reference ➔ Financial Aid
It is said of bank loans that banks make sure that you are the rich guy who does not need the loan really, before they sanction the loan and release the money for your use! (but, seriously, you can indeed get a bank loan for education if you have good friends ready to provide surety/indemnity.)
2007-10-23 23:24:05 · answer #1 · answered by swanjarvi 7 · 0⤊ 0⤋
its just that what will bank do if u take the loan and never return it.they need some surety that u'll return the money.a collateral security means that the bank will be able to get back its money.
this ia the only reason that banks need a collateral in exchange of a loan.
2007-10-23 23:02:37 · answer #2 · answered by Sandy 3 · 0⤊ 0⤋