BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1 & 2
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2 & 3
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1 & 4
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All of the above
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Detailed explanation-1: -Hence, option c is correct. Option a: Interest rates in secured loans are lower than that in unsecured loans. This is because secured loans are less risky as the borrower pays collateral which ensures the repayment of the loan.
Detailed explanation-2: -A secured loan is a type of loan in which a borrower pledges an asset such as a car, property, or equity etc., against that loan. The loan amount made available to the borrower is usually based on the value of the collateral.
Detailed explanation-3: -Asset-based lending is the business of loaning money in an agreement that is secured by collateral. An asset-based loan or line of credit may be secured by inventory, accounts receivable, equipment, or other property owned by the borrower. The asset-based lending industry serves business, not consumers.