A borrower defaults on a secured loan of Rs.

AAFM GLO_CWM_LVL_1 Question Answer

A borrower defaults on a secured loan of Rs. 50,000. The underlying security is worth Rs. 60,000. Which of the following is true? "

"Bank can retain Rs. 50,000. Balance Rs. 10,000 has to be paid to the borrower."

Bank cannot sell the underlying security because its value is higher than loan.

"Bank can retain the entire Rs. 60,000"

"The excess of Rs. 10,000 has to be shared equally between the bank and the borrower."

GLO_CWM_LVL_1 PDF/Engine

Get 75% Discount on All Products, Use Coupon: "ac75sure"