USA HISTORY

Detailed explanation-1: -Unsecured Loans The bank analyses the past relationship with the borrower, the credit score, and other factors to determine whether the loan should be given or not. The interest rate for such loans can be higher as there is no way to recover the loan amount if the borrower defaults.

Detailed explanation-2: -A sum of money borrowed from banks or other financial institutions.

Detailed explanation-3: -A loan is classified as a non-performing asset (NPA) if the repayment is 90 days overdue. In such cases, the lender has to first issue a 60-day notice to the defaulter. If the borrower fails to repay within the notice period, the bank can go ahead with sale of assets.

Detailed explanation-4: -If you do not repay your loan, the lender can take you to court. The court will then require that you pay back the amount in full or face other penalties such as wage garnishment or seizure of assets. The lender may also report the debt to credit bureaus and send debt collectors after you if payments become overdue.