Is collateral security necessary for bank loans?

Guest , Last updated: 24 June 2011
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The concept of Social control in the field of banking sector was introduced by the Government of India for the first time in 1967 and with that in view, the Banking Regulation Act, 1949 was amended.The steps taken by amending the Banking Regulation Act were not found to be sufficient by the gover

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02 July 2011 periasamy

Thanks sir. very good article. But bankers are insisting addl collateral even the prime security is much enough for their funding.

26 June 2011 parimal kalita

Thank you Mr Radhakrishnan for such a valued article.

25 June 2011 Falguni Chattopadhyay

thank your for this nice and helpfull article..

25 June 2011 Falguni Chattopadhyay

thank your for this nice and helpfull article..

25 June 2011 Charu

The suggetions made by the learned author in the last para are worth considering by regulating authorities.

25 June 2011 Charu

The funds lended by Banks indeed are public money and Banks secure the lendings by way of colleteral securities.The honest borrower never minds providing security.

25 June 2011 CA CS CMA Sanjay Kumar Sareen

Mr Radhakrishnan, it is indeed a good article but we must understand that apart from what you have said Banks are the money lenders who need to see their money should be secured alongwith fulfiling of their objectives.