GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Those borrowers who have a good debit history
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Those borrowers who have a good credit history
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Those borrowers who do not have a good debit history
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Those borrowers who do not have a good credit history
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Detailed explanation-1: -Correct Answer: A) those borrowers who do not have a good credit history.
Detailed explanation-2: -Subprime loans have interest rates that are higher than the prime rate. Subprime borrowers generally have low credit ratings or are people who are perceived of as likely to default on a loan. Subprime interest rates can vary among lenders, so it’s a good idea to shop around before choosing one.
Detailed explanation-3: -A subprime loan is a loan offered to individuals at an interest rate above prime, who do not qualify for conventional loans. Such individuals have low income, limited credit history, poor quality collateral, or poor credit.
Detailed explanation-4: -Those borrows who do not have a good credit history.