Question
Banking And Insurance Question on Loans
State two advantages and two limitations of bank loans.
Answer
Advantages:
- Access to Funds: Provides necessary funds for personal or business purposes.
- Lower Interest Rates: Loans typically have lower interest rates compared to other financing options.
Limitations:
- Repayment Burden: Fixed monthly repayments can strain finances.
- Collateral Requirement: Most loans require collateral, which might not be available to everyone.