What do you understand by ‘secured loans’? Enumerate the types of securities generally required by banks for such loans.

1 year ago
Banking

Secured loans are those which are granted against the security of tangible assets, like stock in trade and immovable property.

There are various types of securities which are accepted for giving secured loans:

(a) Tangible assets such as plant and machinery, motor vehicles, etc.

(b) Document of title to goods, like Railway Receipt, Bills of Exchange, etc.

(c) Financial securities (Shares and Debentures)

(d) Life insurance policy

(e) Real estates (land, building, etc.)

(f) Fixed deposit receipt (FDR)

(g) Gold ornaments, jewellery, etc.

Susmita Sah
Jan 16, 2022
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